Lemmy Community for economy, business, politics, stocks, bonds, product releases, IPOs, advice, news, investment, videos, predictions, government, money, politics, debate, current trends and more.
According to this it's due to westerns not investing so much, aka Capital flight, but there's no specific evidence given:
It could in part be because Musk/Trump are expected to crater the US economy so they can buy stocks cheap, so lots of investors are making aure they have cash positions and liquid assets ready to do so.
Those are certainly macro factors, but I think the main reason businesses are pulling out is because of the rise in China imposing Exit Bans, as in, you're allowed to come into the country, but then not allowed to leave.
China’s Exit Bans Are the New Normal: Executives Must Prepare
China's use of exit bans leaves Americans at risk of being arbitrarily detained
The Rise of Exit Bans and Hostage-Taking in China
To be able to do any large scale business in a nation, you have have be able to have your business staff as well as engineering visit to work with manufacturers, suppliers, arrange logistics, etc. Yes, you can use locals, but that's also a good way to overpay or receive low quality products.
If companies can't safely send their staff to your nation, they can't do business there safely. There are now other nations that can provide "good enough" or "cheap enough" manufacturing without a company having to worry about their staff being held as political hostages.