Caixin: China Maintains Grip on Overseas Deals

China’s outbound foreign investments are shrinking as the government tries to rein in debt and encourage “rational” investments, report Peng Qinqin and Leng Cheng for Caixin. For the first six months of this year, they note that China’s nonfinancial outbound investment plunged by nearly half from the previous year to $48.19 billion, adding that scrutiny is applied to “deals in real estate, hotels, entertainment, cinemas and sports clubs” with many overseas deals canceled. The State Administration of Foreign Exchange, China’s foreign-exchange regulator, imposed stricter criteria in 2017 after a year with record levels of direct investment in the United States and the European Union. China's regulators are taking steps to counter a slowing economy and a rising yuan in relation to the US dollar. Reduced currency values make a country’s exports more attractive. China is the world’s largest exporter of goods, and the World Bank reports that exports and services represent almost 20 percent of China’s GDP. – YaleGlobal