Pol­icy Shifts Blamed for De­cline in China-us FDI

NewsChina - - NEWS BRIEF -

Two-way for­eign di­rect in­vest­ment (FDI) be­tween the US and China de­clined sharply in 2017, ac­cord­ing to a new re­port jointly re­leased by the non-profit Na­tional Com­mit­tee on United StatesChina Re­la­tions and data an­a­lysts the Rhodium Group.

The de­cline came mainly from Chi­nese en­ter­prises that in­vested US$43 bil­lion in the US in 2017, 28 per­cent down on the pre­vi­ous year. Amer­i­can com­pa­nies' in­vest­ment in China did not change sig­nif­i­cantly.

The re­port ar­gues pol­icy rather than eco­nomic fac­tors are re­spon­si­ble for the de­cline, find­ing tighter Chi­nese su­per­vi­sion on over­seas in­vest­ment and tighter US con­trol over for­eign in­vest­ment have scut­tled a num­ber of ma­jor deals.

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