Why Chinese FDI in the US Won’t Rebound
Chinese FDI in the US has fallen significantly from its 2016 peak and remained at low levels for the past five years. The reality of the bilateral relationship makes a meaningful rebound of Chinese FDI in the US unlikely.
Chinese investment in the US has fallen significantly from its peak and is unlikely to return to those levels. Total Chinese investment in the US over the last ten years—which includes a strong spike in 2016 and 2017 resulting from China’s relaxed capital controls—amounted to around $190 billion, less than a fifth of the $1 trillion figure floated during the Madrid talks. Such astronomical figures are not necessarily meant to be taken literally, but the potential for increased Chinese investment in the US as part of the ever-shifting landscape of negotiations between the two countries is worth considering. To weigh the possibility of a new investment push, we lay out the timeline of China’s investment in the US, both over the last decade and the last few years.
Why Chinese FDI in the US Won’t Rebound
Chinese FDI in the US has fallen significantly from its 2016 peak and remained at low levels for the past five years. The reality of the bilateral relationship makes a meaningful rebound of Chinese FDI in the US unlikely.
Read on the China Cross-Border Monitor