An individual identified as being close to China’s Ministry of Commerce told The Epoch Times that foreign capital continues to leave China, while a significant portion of newly reported foreign investment consists of Chinese companies registering entities overseas and then reinvesting in China as “foreign” capital.
The source claimed that foreign capital outflows over the past several months were approximately 30 percent higher than during the same period last year—the sharpest increase in five years. According to the source, China’s top leadership has become increasingly concerned and has tasked Vice Premier He Lifeng with leading efforts to stabilize foreign investment, with particular emphasis on retaining German investment while avoiding trade frictions with Europe and the United States. Officials are also reportedly seeking to reassure U.S. and South Korean investors.
A policy package overseen by He reportedly identifies cross-border mergers and acquisitions, cross-border data transfers, and the reinvestment of corporate profits as priority areas for reform. The package reflects Beijing’s recognition that these issues remain among the principal concerns of foreign companies operating in China.
Source: Epoch Times, June 24, 2026
https://www.epochtimes.com/gb/26/6/23/n14794650.htm