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  1. Chinese FDI to US declined 30% in 2017, says survey

Chinese FDI to US declined 30% in 2017, says survey

The decline indicated the bilateral investment relationship is undergoing dramatic change, a Xinhua report said citing the survey

By: | New York | Published: June 21, 2018 7:47 AM
china, chinese fdi, chineses fdi to US, chinese fdi declined Foreign direct investment (FDI) from China to the United States declined 30 per cent in 2017 compared to a record high in 2016, a report released on Wednesday said.

Foreign direct investment (FDI) from China to the United States declined 30 per cent in 2017 compared to a record high in 2016, a report released on Wednesday said. The report, 2018 Annual Business Survey Report on Chinese Enterprises in the United States, was released by the China General Chamber of Commerce – USA (CGCC).

The decline indicated the bilateral investment relationship is undergoing dramatic change, a Xinhua report said citing the survey. One important factor contributing to the decline, as CGCC’s report pointed out, is that the United States is not making things any easier for Chinese investors to satisfy their still strong appetite for allocating funds to the United States.

“A chaotic new administration left many key positions unfilled on the Committee for Foreign Investment in the US (CFIUS), creating a traffic jam of deals submitted for approval,” said the report, adding that CFIUS also increased its scrutiny for security risks. The net result was the abandonment in midstream of an unprecedented number of deals involving Chinese investors.

Even so, there is optimism among Chinese enterprises despite the current realities, and a determination to become integral to the communities in which they do business. “We believe that the most effective investment is an investment that can contribute to local taxation, employment, and environmental protection, while also creating value for shareholders,” said Huajie Song, chairman of Xinchao US Holdings Company.

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