After reaching a record $60 billion in 2016, foreign direct investment (FDI) flows between the United States and China have been squeezed into a diminished position by forces on both sides of the Pacific. In 2017, Chinese FDI in the United States dropped by more than one-third as Beijing re-imposed capital controls and Washington toughened screening of high-technology acquisitions; the value of newly announced transactions dropped by more than 90%. The outlook for 2018 is more uncertain still. President Trump has designated China a strategic competitor, a label not applied since 2000, and Washington is contemplating a disruptive array of more restrictive China policies to respond to national security concerns and the perceived lack of reciprocity, including greatly intensifying the investment screening process.
On April 30, the National Committee on U.S.-China Relations and Rhodium Group hosted an event in New York City, to release two studies and shape the public debate on these urgent topics: Two-Way Street, the definitive analysis of U.S.-China FDI trends from 1990 through 2017; and New Neighbors, the seminal analysis of local impacts from Chinese FDI across every U.S. congressional district. With 12 months of brand new data and a number of recent policy developments in both countries, report author Daniel Rosen provided a thorough and timely presentation of research on U.S.-China FDI, followed by a panel discussion with American legal and business leaders.
This event is part of the U.S.-China FDI Project, a multi-year research initiative that aims to provide greater transparency on FDI flows between the United States and China.