Chinese investment in the U.S. isn’t likely to pick up under Trump

From CNBC: 2025-01-19 23:56:26

In 2014, Cho Tak Wong, chairman of Fuyao Glass, bought a vacant GM plant in Ohio. Chinese investments in the U.S. have sharply declined under Trump’s presidency. Analysts predict a continuation of this trend, with Trump imposing additional tariffs on Chinese goods. Chinese investments in the U.S. have slowed significantly, with only $860 million flowing in during the first half of 2024.

Emirati property giant Damac pledged $20 billion for U.S. data centers, while SoftBank CEO Masayoshi Son announced a $100 billion investment for AI development. Chinese investments in the U.S. have dramatically decreased, dropping from $46.86 billion in 2017 to $860 million in the first half of 2024. Regulatory policies in both countries have stemmed this flow.

Since 2017, Chinese investments in the U.S. have slowed due to tighter control over capital outflows and regulatory policies. Analysts don’t expect investments to return to peak levels seen in 2016-2017. Chinese companies are now focusing on joint ventures and greenfield investments in the U.S., rather than acquisitions.

Chinese hackers targeted a U.S. government office overseeing foreign investments. Trump hinted at using tariffs to attract Chinese investments to the U.S. Advocacy groups have criticized Trump’s policies on Chinese investments. Even if Chinese investments increase, the process is long-term and unpredictable due to changing policies. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by over 500 points. This decline was attributed to concerns over rising inflation and interest rates.

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