September 15

Analysis: Western Firms Shift Investment from China to India as Worries Mount

By Joe Cash

U.S. and European firms are shifting investment away from China to other developing markets, a report from Rhodium Group showed, with India receiving the vast majority of this redirected foreign capital, followed by Mexico, Vietnam and Malaysia.

These companies are turning their backs on the world’s second-largest economy even as its share of global growth continues to increase, highlighting how concerns over China’s business environment, economic recovery and politics weigh heavy on the minds of foreign investors.

Photo courtesy of Tomas Roggero.

Source: Reuters (link opens in a new window)

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