After several years of holding steady around $10 billion annually, Chinese direct investment in the United States ballooned to a mammoth $56 billion in 2016, before declining dramatically in 2017 due to Chinese capital controls. Chinese capital has found its way from financial centers on the east coast and manufacturing hubs in the Midwest to high-tech and entertainment industries on the west coast. This wave of Chinese money has also brought its share of political controversy, particularly when it comes to acquisitions of sensitive technologies. Chinese investments may experience more unpredictable ebb and flow as national security concerns intensify in the United States, at the same time as Chinese authorities grow more wary about volatile capital outflows.
- MacroPolo’s interactive FDI product: Know the Numbers
- Reversion to the Mean: Why Chinese Investment Did Not, In Fact, “Collapse”
- Three Less Understood Aspects of Chinese Investment in America
Sources: Mergermarket; MacroPolo’s Know the Numbers.