Europe is making less money in China.

Chinese investment in Europe is slowing as real estate market is declining and consumer demand is drying up . American investment is also faltering as a result of geopolitical instability .

Beijing, China, September 23: Globally, European company investment in China is slowing as the country's real estate market is declining, consumer demand is drying up as a result of tight Covid zero policies, and American investment is also faltering as a result of geopolitical instability, according to the Times.The Chinas released estimates for foreign direct investment indicate that it is gradually increasing.However, the bulk of what China considers to be foreign investment comes from Hong Kong, which tends to be made up of mainland money that has been briefly routed through Hong Kong as a tax-minimization measure, according to a recent report by Rhodium, a New York consulting firm, which estimates that such greenfield investments in new factories and other installations fell to just under USD 2 billion in the first half of this year, compared to USD 4.8 billion in the first half last year.The bulk of the few European investments currently being made in China are made by a handful of German companies, such as Volkswagen.They raise money for these investments primarily by retaining profits from their Chinese subsidiaries in China, according to the European Chamber of Commerce in China, which has tightly controlled international travel to minimize the chances of coronavirus outbreaks, according to the Straits Times.In another analysis released on Tuesday, the European chamber said that many European companies are becoming unimpressed by China's economic climate, saying that the Chinese economy rose just 0.4 percent from a year ago, making the country less attractive to foreign investment.