China is facing difficulties in attracting foreign companies and investments, as shown by recent data. Foreign direct investment into China has turned negative for the first time since 1998, indicating a lack of capital inflows. The decline in direct investment liabilities suggests that foreign companies may be withdrawing their money from China instead of reinvesting. While geopolitical tensions and increasing risks in China contribute to this trend, efforts by Beijing to reverse capital outflows have failed to reassure investors. Companies like Vanguard are also pulling out of the country. Despite China's attempts to boost economic growth, such as through the China International Import Expo and relaxation of capital controls, global investors remain cautious due to China's scrutiny of Western companies and a structural slowdown.
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