Chinese investment in the US declined to $5 billion last year, down from 2018 and the lowest level since the global financial crisis in 2008, according to the US-China Investment Project. Given that the tensions between the world’s two largest economies are heating up again, it is likely that the figure will drop further in 2020.
The analysis cited China’s slower economic growth, restrictions on outbound capital, rising tensions, and more regulatory oversight in the US as the main factors contributing to the decline in China’s investment in the US.
At the end of last year, the US and China proudly announced phase one of a trade deal that ended a 16-month conflict. However, the relations have deteriorated again amid the coronavirus pandemic that has killed over 270,000 people worldwide. The US is blaming China on the failure to address the rapid spread of the virus.
US President Donald Trump said last week that he was not
sure about implementing the phase one trade deal.
Nevertheless, the Monday report from the US-China Investment
Project shows that the Chinese investment into the US had declined even before the
coronavirus outbreak started in Wuhan.
On the other side, the US investment in China slightly increased
last year to $14 billion, up from $13 billion in 2018.