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Economy

Foreign investment in China turns negative for first time

Money flows out of country on concerns over U.S. tensions, anti-spy laws

Foreign direct investment in China has dropped as the U.S. has tightened restrictions on semiconductor technology exports to China.   © Reuters

BEIJING -- Outflows of foreign direct investment in China have exceeded inflows for the first time as tensions with the U.S. over semiconductor technology and concerns about increased anti-spying activity heighten risks.

The shift was reflected in balance-of-payments data for the July-September quarter released Friday by the State Administration of Foreign Exchange.

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