After Xi Jinping was re-elected for three consecutive terms, he took power alone, the reformist group was wiped out, and foreign capital was intimidated to flee.

(Schematic, Associated Press)

[Financial Channel/Comprehensive Report] Xi Jinping dominated the first trading day for 3 consecutive days, foreign capital fled, and the stock markets in China and Hong Kong plummeted. Last Monday (24th) alone, foreign investors sold US$2.5 billion of Chinese stocks, and foreign companies that were originally waiting to see also began to shake.

The American kitchenware industry, which has been in China for 20 years, complained that every customer is putting pressure on us, hoping to decouple from the Chinese market and deploy in Southeast Asia.

The Financial Times reported that Thomas Gatley, an analyst at Gavekal Dragonomics in Beijing, said that after Xi Jinping's three-term re-election, there is no moderate checks and balances, and he can do whatever he wants, causing the market to sell off stocks is normal.

The Financial Times estimated that on the 24th alone, investors sold US$2.5 billion of Chinese stocks, and the Nasdaq Golden Dragon Index, which tracks Chinese technology stocks, also plunged 14.4%, an unprecedented drop.

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In addition to the withdrawal of stock market investors, Chinese and foreign companies have also begun to decouple from China and moved to regions such as India, Vietnam and Cambodia.

Velong Enterprises, an American barbecue and kitchen products manufacturer that has set up factories in China for 20 years, is also under pressure from customers to withdraw from China.

"There's not a single client that doesn't pressure us, suggest that we build factories outside of China," Jacob Rothman, the company's founder and chief executive, told The Wall Street Journal.

He said there are currently six factories in China serving large corporations, retailers and consumer brands.

In order to reduce the proportion of the Chinese market, it has set up factories in Cambodia, established joint ventures in Vietnam and India, and studied the market potential of the Philippines, and plans to go to Mexico and Turkey.

At present, there are about 1,200 employees in China and about 600 employees outside China.

Rothman believes that decoupling foreign companies from China will not be easy, but it will increase over time.

Rothman's wife also admitted that some customers are now losing confidence in China, and this year's performance is expected to fall by 30% compared with last year.

Rothman's Chinese partner also said that 2022 is a turning point, and the world will no longer rely on Chinese factories in the future.

Rothman said that after 20 years of life in China, I don't want to leave, but if I really have to, I will.

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