Overseas investment has also declined as tensions between China and the West have risen.
Beijing’s relationship with Washington has hit its lowest point since diplomatic relations between the US and China were first established in the late 1970s, with tensions rising over a range of issues ranging from Chinese military activity around Taiwan to a decision by the Biden administration to tighten export controls on chips used for artificial intelligence.
In Britain, the Government has also stepped up monitoring and intervention of Chinese takeover deals on national security grounds.
Wang Chunying, deputy head of SAFE, insisted there were signs that investment inflows into China were recovering.
Confirmation of the slump last year came as China’s premier urged officials in the Communist Party to do more to boost confidence in the economy.
In comments that suggest officials remain worried about sluggish growth, Li Qiang told China’s cabinet that “pragmatic and forceful” action was needed to boost economic growth, calling for “consistent and stable” policymaking, according to China’s state news agency Xinhua.
Prices in China fell at the fastest rate in 15 years in January as flagging demand pushes the country deeper into deflation.
