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 States-China 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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