Direct investment of China in the United States fell at its lowest level last year

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Direct investment of China in the United States fell at its lowest level last year. Since the great recession, much of global commerce event for the shutdown due to the coronavirus pandemic. Chinese government restriction over overseas investment and tensions between the world’s two biggest economies reflected due to the decline in the Beijing’s investment in United States. China’s direct investment in the US dropped from 5.4 million dollar in 2018 to 5 million dollar last year the lowest level since the recession of the year 2009 this was found by the Relations and Rhodium Group Consultancy. Direct investments not included financial investments like purchase of stocks and bonds and included the mergers, acquisitions investments in things like factories and offices.

Direct investment

As the coronavirus pandemic hammered the world economy, the report found that Chinese direct investment in United States has virtually vanished- from January to March this year-to 200 million dollar.US investment in China ticked up last year – to $14 billion from $13 billion in 2018. But this increase had largely affected the previously announced projects which includes Tesla’s factory in Shanghai. The report found that the two-way investment between the United States and China fell to a seven-year low. Beijing and the Trump administration reached an interim trade agreement in January. But the pact was quickly overtaken by the pandemic.

 

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