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As the twentieth century drew to a close, Hong Kong, recently transformed into a Special Administrative Region of the PRC, seemed a city totally unlike any of its neighbors. Many observers were surprised by how light a touch Beijing seemed to be exerting in the wake of the 1997 handover, and the striking contrast between what could be said, done, and published in Hong Kong, compared to mainland metropolitan cities such as Shanghai and Shenzhen.

In an interview on CNN's Quest Means Business, Stephen Orlins, president of the National Committee on U.S.-China Relations, says he's "puzzled" why President Trump is making his negotiations with China public. "China 101 teaches you that if you want to make a deal, you make your representations privately. When you put their backs to the wall, it decreases the odds of a deal." Mr. Orlins also cites brand new data published that day from NCUSCR and Rhodium Group's U.S.-China Investment Project: "Chinese investment has fallen off a cliff—it contracted last year, which I think is bad for the United States—and we've got a broadening definition of national security, which is basically making it more difficult for Chinese investors to create jobs in the United States." Recorded 5/8/19.

Recent policy changes and a deteriorating bilateral relationship have greatly impacted cross-border investment flows between the United States and China. Chinese FDI in the United States has dropped to the lowest level seen in seven years, and was even negative if divestitures are taken into account. American FDI in China has held up better, but recent Chinese liberalization has not yet sparked a big rush by U.S. companies.

As tensions continue to escalate between the United States and China, technology has become a focal point of growing bilateral competition. One of China’s top high-tech companies, Huawei, is the subject of scrutiny from competitors as well as governments across the globe, as it faces accusations of violating sanctions, stealing trade secrets, and compromising user privacy.

In this interview with NCUSCR President Stephen Orlins, founder and CEO of 52 Capital Partners David P. Willard discusses how his work in mergers and acquisitions is affected by macroeconomic policies in the United States and China and gives his perspective on where the economic relationship between the two countries is heading. Mr. Willard spoke at a National Committee event on April 25, 2019.

Nicholas Consonery, director at Rhodium Group, presents and leads an interactive discussion on the U.S.-China trade war.