Economy
Related: About this forumChinese Money in the U.S. Dries Up as Trade War Drags On
Hat tip, Joe.My.God:
WINNING: Chinese Investments In US Plummet 90%
By Alan Rappeport
July 21, 2019
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WASHINGTON Growing distrust between the United States and China has slowed the once steady flow of Chinese cash into America, with Chinese investment plummeting by nearly 90 percent since President Trump took office.
The falloff, which is being felt broadly across the economy, stems from tougher regulatory scrutiny in the United States and a less hospitable climate toward Chinese investment, as well as Beijings tightened limits on foreign spending. It is affecting a range of industries including Silicon Valley start-ups, the Manhattan real estate market and state governments that spent years wooing Chinese investment, underscoring how the worlds two largest economies are beginning to decouple after years of increasing integration.
The fact that the foreign direct investment has fallen so sharply is symbolic of how badly the economic relationship between the United States and China has deteriorated, said Eswar Prasad, former head of the International Monetary Funds China division. The U.S. doesnt trust the Chinese, and China doesnt trust the U.S.
For years, Chinese investment into the United States had been accelerating, with money pouring into autos, tech, energy and agriculture and fueling new jobs in Michigan, South Carolina, Missouri, Texas and other states. As Chinas economy boomed, state and local governments along with American companies looked to snap up some of those Chinese funds.
But Mr. Trumps economic Cold War has helped reverse that trend.
Chinese foreign direct investment in the United States fell to $5.4 billion in 2018 from a peak of $46.5 billion in 2016, a drop of 88 percent, according to data from Rhodium Group, an economic research firm. Preliminary figures through April of this year, which account for investments by mainland Chinese companies, suggested only a modest uptick from last year, with transactions valued at $2.8 billion.
I certainly hear in conversations with investors a lot of concern about whether the U.S. market is still open, said Rod Hunter, a lawyer at Baker McKenzie who specializes in foreign investment reviews. You have a potentially chilling effect for Chinese investors.
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A version of this article appears in print on July 22, 2019, Section A, Page 1 of the New York edition with the headline: Trade War Leads Chinese Spending In U.S. to Plunge. Order Reprints | Todays Paper | Subscribe
underthematrix
(5,811 posts)progree
(10,907 posts)... For years, Chinese investment into the United States had been accelerating, with money pouring into autos, tech, energy and agriculture and fueling new jobs in Michigan, South Carolina, Missouri, Texas and other states. As Chinas economy boomed, state and local governments along with American companies looked to snap up some of those Chinese funds.
.... Chinese foreign direct investment in the United States fell to $5.4 billion in 2018 from a peak of $46.5 billion in 2016, a drop of 88 percent, according to data from Rhodium Group, an economic research firm.
Progree ascii graphics:
Chinese foreign direct investment in the United States:
"#" = $1.8 billion
########################## 2016 (Obama's last full year)
### 2018 (Trump's 2nd year)
and they own $1.1 trillion of the U.S. national debt ... (as of April 2019)
mahatmakanejeeves
(57,437 posts)In a day or two, Raw Story will rerun the story, leaving out the journalist's name. Then it will appear in LBN.
Besides, doesn't the big stuff always fly under the wires? That's what makes it so big.
Wellstone ruled
(34,661 posts)Yes,China has shut down most of their Money Infusions . Here in Vegas,they bailed on two Casino projects since 2016,leaving these to the Bankruptcy Courts to sort out. Oh,and a Electric Car Company,which hammered a couple of local Construction Companies.
Watch for Foxxconn to bail,same scam as and many of the same players as the Electric Car Company.
Farmer-Rick
(10,169 posts)Isn't our stable genius in real estate? China isn't buying real estate and overall foreign purchases of real estate ate down.
So, when do Trump's and Kushner' s properties start dropping in price? Time for the poorer Russian people to come bail out our president?
progree
(10,907 posts)hopefully will be seen more widely https://www.democraticunderground.com/100212303603