Xi Battles Distrust by Global Investors Burned in China Before

(Bloomberg) — President Xi Jinping’s efforts to regain the trust of international investors face serious hurdles.

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Xi’s government showed little regard for the same investors last year when it unleashed a series of crackdowns on the country’s most profitable companies, in a bid to curb “disorderly capital” and ensure the firms didn’t become more powerful than the Communist Party. The result was confusion and punishing losses for shareholders. Regulators have yet to follow through on promises made this month to ensure policies are more transparent and predictable.

Wariness toward Chinese assets has only increased since Russia attacked Ukraine just weeks after a Beijing summit reinforced the close ties between Xi and Vladimir Putin. Global investors feared the Biden administration would hit China with similar penalties, even though American officials say China has complied with U.S. sanctions and there’s no evidence to suggest otherwise.

While…