Why investors cannot escape China exposure

For america’sgdp commerce secretary, midway through a trip to Beijing, to describe China as “uninvestible” might once have prompted an unpleasant diplomatic spat. Yet when Gina Raimondo did so a month ago, it barely caused a ripple. That was not just because the rest of her visit was a clear attempt at rapprochement. It was also because it is now firmly established that American companies, as well as Western investors more generally, see China in such terms.The bad news just keeps coming. Sometimes it is Chinese authorities raiding the offices of American companies and detaining their staff, as they did to Mintz Group, a due-diligence firm, earlier this year. At other times it is Chinese bosses disappearing, as has happened on numerous occasions in recent years. In September it emerged that an investment banker at Nomura had been barred from leaving the country. All of this is happening in the context of a profound economic malaise. On October 1st the World Bank became the latest institution to downgrade its forecasts for China. And disturbing the sleep of investors is an even bleaker prospect: a Chinese invasion of Taiwan. Should Xi Jinping decide to launch such a war, the resulting sanctions would cause economic and financial chaos, stranding capital ploughed into Chinese assets.