After aggressive policy liberalization that effectively lifts approval requirements for most overseas deals, outbound foreign direct investment (OFDI) by Chinese firms is projected to reach a new record high of $120 billion this year. However, the recent liberalization of capital controls has also further complicated the task of accurately recording such outflows. Alternative data points suggest that the growth of China’s outbound investment in 2014 was much less spectacular than official data suggest.
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After a slow 6 months, China’s global outbound FDI picked up again in the third quarter of 2014. In the Unites States, Chinese firms spent $3.1 billion on FDI transactions from July to September, including Lenovo’s acquisition of IBM’s x86 server business. This note reviews ...
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China’s economic reform program is beginning to impact the country’s global investment profile, with the changes also felt in the United States. Interest in US assets continues to be strong, but the industry focus is shifting towards real estate, advanced services and manufacturing. This note ...
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Last week China’s Shandong Tranlin Paper company announced an investment of up to $2 billion in a paper and fertilizer plant in Virginia, which is expected to create 2,000 local jobs by 2020. This is the latest example in a series of manufacturing investment announcements ...
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After spending more than $14 billion on US acquisitions and greenfield projects last year, Chinese companies announced more than $8 billion worth of deals in the first quarter of 2014. This note reviews the patterns, key transactions and political developments in the China-US investment relationship ...
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The People’s Bank of China just released full year 2013 data on China’s Balance of Payments (BOP) and International Investment Position (IIP). This note describes the most important changes in China’s external balance sheet last year and discusses Beijing’s near-term policy priorities with regard to cross-border ...
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A new report by Thilo Hanemann and Dan Rosen explores the advent of Chinese investment in US high-tech sectors.
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The People’s Bank of China just released preliminary data for China’s 2013 balance of payments, which provides a snapshot of China’s economic exchanges with the rest of the world. This notes summarizes the most important developments in the past year and discusses the implications for ...
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Chinese investment in the United States doubled in 2013, driven by large-scale acquisitions in food, energy and real estate. Private firms are now dominating capital inflows, accounting for more than 80% of transactions and more than 70% of total transaction value. We expect Chinese interest ...
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The China Investment Monitor (CIM) is a dataset that aims at providing a comprehensive picture of Chinese direct investment transactions in the United States. It currently covers the period of 2000 to date. The data is updated on a quarterly basis and made available to ...
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New rules for the Shanghai Free Trade Zone confirm ambitious reform goals and put forward an aggressive implementation timeline.
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Last month, Beijing announced its boldest economic reforms in decades. This article explores how these adjustments will affect China’s outbound investment.
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In Q1-Q3 2013, Chinese firms invested more than $12 billion in the United States. More than three quarters of that investment originated from the private sector.
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A new report co-authored for the US Chamber of Commerce assesses the opportunities for Chinese participation in the coming $8 trillion US infrastructure modernization.
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In July, China surprised observers by agreeing to negotiate a bilateral investment treaty with the United States including all sectors and stages of investment. And last week, China’s cabinet pushed for the suspension of existing FDI regulations for a new pilot free trade zone (FTZ) ...
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Last week, China and the United States agreed to enter negotiations on a bilateral investment agreement (BIT). China’s readiness to negotiate an agreement that encompass all industries and all stages of investment comes on the back of fast-growing Chinese outbound investment. In the United States, ...
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At their Sunnylands summit this week, President Obama and China’s President Xi Jinping are sure to discuss American attitudes toward Chinese investment in the United States. The announced takeover of US pork producer Smithfield by China’s Shuanghui has stirred a public debate about foreign takeovers ...
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After a weak fourth quarter 2012, FDI transactions by Chinese firms in the US are trending up again, and with more than $10 billion worth of deals announced or pending the pipeline is stronger than ever. This note discusses the key trends, transactions and political ...
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The People’s Bank of China just released new data on the nation’s International Investment Position (IIP) at year-end 2012. This note summarizes important changes to China’s external balance sheet in the course of the last year and explores the policy developments and real economy trends ...
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Many countries have long felt China’s economic rise through growing imports, a substantial trade deficit, and government-directed investment to recycle ballooning foreign-exchange reserves. However, new flows such as outward investment and outbound tourism are now outgrowing traditional flows, a sign that the next stage of ...
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Chinese direct investment in the United States and Europe has grown fast since 2008. In the past two years, Europe has attracted twice as much investment as the US as Chinese investors seized commercial opportunities arising from the European crisis. Flows to the US can ...
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Over the past decade China has become one of Europe’s most important economic partners. In 2011 bilateral trade flows totaled €430 billion, four times higher than just ten years ago. In addition to growing exports, European firms have also expanded their physical presence in China. ...
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Foreign direct investment in the United States has dropped dramatically in 2012 on the back of structural adjustments in Europe and uncertainty about the US economic outlook. While still at a comparably low level, FDI from China ran counter that trend, growing 41% year-on-year in ...
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One of the indicators China bears followed in 2012 to gauge falling confidence in the Chinese economy was the apparent decline in foreign direct investment (FDI). Statistics published by China’s Ministry of Commerce showed that FDI was falling throughout the year, the first such drop ...
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2012 was a record year for Chinese investment in the United States, reflecting both the growing determination of Chinese firms to expand overseas and the attractiveness of U.S. markets and assets to these investors.
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At the beginning of 2012, many observers predicted a dismal year for Chinese investment in the United States, pointing to the economic volatility and major political events in both countries. However the opposite has proven true: in the first three quarters of 2012, Chinese firms ...
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This new report analyzes Chinese investment in California in depth to help inform the policy debate on how to maximize the state's benefits from this new trend.
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The recent uptick in Chinese acquisitions in the United States has rekindled old fears about the political and economic impacts of foreign investment. A particular concern is that Chinese investments will harm rather than help local employment, because state ownership and China’s industrial policy might ...
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RHG analyzes the employment impacts of almost 600 Chinese direct investment transactions in the United States between 2000 and 2012.
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After a temporary slowdown in H2 2011, Chinese direct investment in the United States has once again picked up. Investent flows rebounded from a three-year low of $69 million in Q4 2011 to $442 million in Q1 2012 and $3.2 billion in Q2 2012, totaling $3.6 billion in H1 2012. This has set the stage for a record-breaking year with the potential to significantly outpace the high of $5.7 billion recorded in 2010. This note analyzes the patterns of Chinese investment in the US in H1 2012 and discusses the most important industry trends and policy developments.
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Chinese direct investment in the United States dipped to $69 million in Q4 2011, dragging down the full year figure to $4.5 billion. This is a slight drop from last year’s $5.2 billion and significantly lower than figures for Europe, where Chinese investment surged to ...
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In Q3 2011, Chinese investors expanded their foothold in the United States, spending 1.03 billion for 9 greenfield projects and 9 acquisitions. This update summarizes the third quarter trends, analyzes key transactions, and discusses the latest policy developments in the U.S.-China investment relationship.
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This note analyzes the new headline figures and a second dataset, which shows that the benefits from Chinese investments for local economies are starting to become tangible.
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This update reviews Chinese direct investments in the U.S. in Q2 2011, highlights key transactions and comments on the most important policy developments.
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This update reviews Chinese FDI in the United States in Q1 2011, highlights key transactions and comments on the most important policy developments in the US-China investment relationship.
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Chinese overseas direct investment is taking off, and increased investments in American companies could have huge benefits for the US-- unless politicization and fear-mongering turn away potential investments.
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Investment by Industry (in $mil)
Investment by Type (in $mil)
Greenfield:
Acquisitions:
Investment by Ownership (in $mil)
Government:
Private: