China’s foreign investment plunges after official curbs

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BEIJING — China’s government says Chinese investment in other countries has plunged since Beijing tightened controls to discourage purchases of sports teams and other assets deemed unneeded for national development.

The Commerce Ministry said Thursday that outbound investment in the first eight months of this year fell 41.8 per cent from a year earlier to $68.7 billion.

Chinese companies, flush with cash from an economic boom, stepped up purchases of foreign technology and brands in recent years to speed their development.

But authorities tightened controls last year and said they want companies to focus on assets needed by China’s economy instead of sports, entertainment and real estate.

The Commerce Ministry said investment this year went mainly into manufacturing, wholesale and retail, and information technology.