China has reduced its direct investment in the United States to its lowest level from even before CCP Virus (coronavirus) outbreak made the country to virtually suspend its investment this year.
Chinese direct investment in the United States fell to $5 billion in 2019 from $5.4 billion in the previous year, marking the lowest level since the recession of 2009, The Associated Press reported, citing a report released on Monday from the National Committee on U.S.-China Relations and the Rhodium Group consultancy.
Direct investment includes mergers, acquisitions, and investments in things like offices and factories but not financial investments like purchases of stocks and bonds.
The decline in investment reflects the CCP’s trade tensions with the United States as well as Beijing’s restrictions on overseas investment.
And after the CCP Virus pandemic shut down much of global economy this year, the CCP’s direct investment in the United States virtually vanished.
The report showed that the CCP poured only $200 million of direct investment in the United States in the January-March period.
According to the report, the United States invested $14 billion worth of foreign investment in China last year, up from $13 billion in 2018.
But that increase largely reflected previously announced projects, including Tesla’s factory in Shanghai.
Two-way investment between the world’s two largest economies also fell to a seven-year low, the report found.
U.S. regulators have been taking a harder look at Chinese investment in the United States, with worries that the CCP will gain access to sensitive American technology.
The Trump administration has imposed tariffs on about $360 billion worth of Chinese goods after charging that the CCP has used abusive tactics, including forcing foreign companies to hand over trade secrets and outright cybertheft, in its effort to surpass American technological dominance.
The two countries reached an interim trade agreement in January intended to ease the tension, but the pact was quickly overtaken by the CCP Virus pandemic.