Chinese investment

Chinese investment in US falls sharply

MNA Business Desk: Chinese investment in the US plunged last year as tensions between the two countries mounted. The value of deals announced in 2017 fell by more than 90 per cent from the year before, according to joint studies by the National Committee on US-China Relations and the Rhodium Group.

The reports said policy shifts in both countries triggered the decline.

China has curbed outbound investments, while the US is raising concerns about deals for national security reasons.

“This altered policy environment has already changed patterns of two-way (foreign direct investment) and will continue to reshape investment levels and composition in the future,” the report said.

Chinese firms completed $29 billion (£20.5 billion) worth of investments in the US last year, down 35 per cent from the record $46 billion completed in 2016, the report found.

But the 2017 figure was “propped up significantly” by deals carried over from the previous year, according to the study. If transactions announced prior to 2017 are not included, the value of completed deals fell by 74 per cent.


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