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Chinese investment in US economy declined to the level of 2009

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Chinese investment in US economy declined to the level of 2009
May 11
13:00 2020

The National Committee on United States-China Relations has released a report on the cooperation between the States and the Celestial Empire last year. It became known that in 2019, China’s direct investment in the US economy had fallen to the level of 5 billion US dollars. A year earlier, this indicator was equal to 5.4 billion US dollars, i.e. the decrease has totaled $ 0.4 billion.

5 billion US dollars is an impressive amount, but only at first glance. In fact, only a similar indicator of the times of Great Recession 10 years ago was below the level of the investment last year. The trade war between the two strongest economies in the world caused such poor outcomes. Also, the mutual restrictions imposed by the leaders of the both states on foreign investment added fuel to the fire.

But American investments in the Chinese economy in 2019 grew by a billion (from 13 to 14 billion US dollars). This jump has taken place thanks to the long-planned large projects. One of them was the construction of the factory of the American company Tesla in Shanghai.

The committee has estimates that bilateral investment between the United States and China dropped in 2019 to a seven-year low.


The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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