-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanshan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Budding Writers
-
Fun
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Shopping
-
Business_Markets
-
Restaurants
-
Travel
-
Investment
-
Hotels
-
Yearend Review
-
World
-
Sports
-
Entertainment
-
QINGDAO TODAY
-
In depth
-
Leisure Highlights
-
Markets
-
Business
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> World Economy -> 
Chinese investment in US tumbles
    2018-04-12  08:53    Shenzhen Daily

AFTER climbing for much of the past two decades, Chinese investment into the United States dropped by 36 percent last year as relations between the world’s two largest economies cooled.

Long before this year’s trade restrictions were announced and the extent of the tensions between the two nations became clear, Chinese businesses and investors had hit the brakes on new U.S. acquisitions, sending the level of investment down to US$29.4 billion last year from a record US$46.2 billion a year earlier, according to data on foreign direct investment released Tuesday by the National Committee on U.S. China Relations, a nonprofit that promotes cooperation between the two countries, and the Rhodium Group, an economic consultancy.

“The past year has seen a ratcheting up of negative attitudes toward investment,” said Stephen Orlins, the committee’s president. “When investments are denied, there are very real trade-offs with asset valuations, as well as job and economic growth.”

The investments that took place last year were almost all projects or acquisitions that had been previously announced. The value of newly announced Chinese acquisitions in the United States in 2017 dropped by 90 percent from a year earlier, according to the study. U.S. official statistics are released with a longer lag time.

The report attributed the plunge to two key factors and noted that both were driven by political winds rather than market forces.

The United States increased scrutiny on Chinese investments beginning under the Obama administration and gaining steam under President Donald Trump.

The drop in investment last year raises questions about the potential fallout from the intensifying trade skirmish between the two nations. While Trump signaled his intention to take a hardline stance against some of China’s trade tactics and began a review of Chinese intellectual property practices, major trade actions didn’t commence until earlier this year.

In January, the administration imposed steep tariffs on imports of solar panels and washing machines, aimed mostly at China. In March, Trump unveiled global tariffs on steel and aluminum, ultimately exempting many countries from the tariffs, but not China. Then, last week, the administration unveiled tariffs on US$50 billion worth of Chinese goods, and when China responded with duties of its own, Trump threatened to triple his efforts, applying the penalties to an additional US$100 billion in goods.

Chinese investment in the United States remains relatively small, especially compared with European countries with much longer-standing investment ties. China ranked 11th in cumulative foreign direct investment into the United States in 2016, according to the Organization for International Investment.

Last year, China’s investments focused on real estate and hospitality projects and transportation and infrastructure projects. There isn’t much in the pipeline for this year. U.S. investment into China continued at a steadier pace last year. While most Chinese investment in the United States has come in the form of acquisitions, U.S. investments into China have largely been spent on new factories and facilities.

Majority Chinese-owned firms employed 139,600 full-time people last year in the United States, according to the report. That figure more than doubles if firms with Chinese minority ownership are included, owing in large part to the 163,000 employees of Hilton Worldwide Holdings Inc., which is 25 percent Chinese owned. (SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn