China’s direct investment within the US fell last year to its lowest level since the good Recession, even before the corona virus pandemic pack up much of worldwide commerce. The decline in Beijing’s investment within the us reflected tensions between the world’s two biggest economies and Chinese government restrictions on overseas investment.
A return Monday from the National Committee on US-China Relations and therefore the Rhodium Group consultancy found that China’s direct investment within the US dropped from $5.4 billion in 2018 to $5 billion last year, the lowest level since the recession year of 2009. Direct investment includes mergers, acquisitions and investments in things like offices and factories but not financial investments like purchases of stocks and bonds.
The report found that Chinese direct invest within the us virtually vanished – to $200 million – from January-March this year because the coronavirus pandemic hammered the planet economy.
US investment in China ticked up last year that to $14 billion from $13 billion in 2018. But that increase large reflected previously announced projects which including Tesla’s factory in Shanghai.
Two-way investment between the us and China fell to a seven-year low, the report found.
United States regulators worried that China will gain access to the sensitive American technology, have been taking a harder look at the Chinese investment in the US, a shift that mandated by a 2018 law.
The 2 countries have sparred over United States charges that China uses abusive tactics, including the forcing foreign companies to hand over the trade secrets and outright cyber-theft in its efforts to the surpass American technological dominance. President ‘Donald Trump’ has imposed tariffs on around $360 billion worth of Chinese goods.