A brand new report by Rhodium Group exhibits that funding between america and China within the first half of the 12 months tumbled to an estimated $ 10.9 billion, from $ 26 billion at its 2016 peak.
Based on analysis performed along with the non-profit Nationwide Committee on US-China Relations, a single buy accounted for the lion’s share of the $ four.7 billion immediately invested by Chinese language corporations into the US. That’s when tech big Tencent paid $ three.four billion in March for a minority stake in Common Music Group.
The authors of the report famous that the fall-off was as a result of more and more restrictive insurance policies the Trump administration adopted towards Chinese language funding, notably within the tech business.
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Statistics present that direct funding by US corporations in China dropped to $ four.1 billion through the first six months this 12 months as nicely. US enterprise capital funding in China additionally plummeted notably to $ 1.three billion amid a broader slowing of tech offers and the fallout from the pandemic.
Regardless of all that and Trump’s intentions to “decouple” the 2 nations economically, American and Chinese language corporations proceed to be dedicated to one another’s markets.
Based on an annual survey launched final week by the China Normal Chamber of Commerce, as many as 90 % of greater than 1,000 Chinese language executives working within the US stated they anticipated their investments within the US would both stay the identical or develop over the subsequent 12 months.
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Equally, simply 4 % of about 1,400 US corporations in China stated they have been planning to maneuver any manufacturing overseas.
Nearly all of US corporations “are in China for China,” stated Jake Parker of the US-China Enterprise Council as quoted by the South China Morning Submit. “They’re there to entry the Chinese language home shoppers. They’re not likely utilizing China’s export platform to america.”
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