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China Is Pariah for Global Investors as Xi’s Policies Backfire

  • ‘It’s just easier to put China aside,’ Ruffer’s Smith says
  • Citi finds ‘surprisingly low level’ of client engagement
Xi Jinping

Xi Jinping

Photographer: Justin Chin/Bloomberg
Updated on

After drawing foreign capital into China’s markets for years, President Xi Jinping is now facing the risk of a nasty period of financial de-globalization. Investors point to one main reason why: Xi’s own policies.

Money managers once enticed by China’s juicy yields and huge tech companies now say reasons to avoid the country outweigh incentives to buy. They cite everything from unpredictable regulatory campaigns to economic damage caused by strict Covid-19 policies, not to mention growing risks stemming from a wobbly real-estate market and even Xi’s coziness with Russia’s Vladimir Putin.