Direct investment in China decreased by more than 80% from last year, lowest level in 30 years. This is due to growing uncertainty about the future of the economy.
The slump in the real estate market, tightening restrictions on foreign companies such as the enforcement of the revised anti-espionage law, and the US government's concerns over cutting-edge technologies such as semiconductors. A survey released in January by an organization made up of Japanese companies expanding into China found that nearly 50% of member companies plan to reduce investment.