Sunday October 20, 2019

 

OPPORTUNITY FOR CHINESE INVESTMENT IN U.S. BUT ROADBLOCKS REMAIN
May 5, 2011

According to a new May 2011 report by the Asia Society and Wilson Center’s Kissinger Institute on China and the United States, a substantial wave of Chinese investment is projected to come to the U.S., however politicization threatens to disrupt this flow of FDI. Over the next decade, China will invest almost $2 trillion in foreign companies worldwide, much of which could help create jobs and spur American economic growth.

Despite the great potential for Chinese investment in the U.S., anti-China sentiment is widespread. U.S. firms fear the close-knit nature of Chinese companies to the Chinese government will lead to stealing military secrets, particularly in dual-use technology. Another concern is that Chinese companies will open manufacturing plants in the U.S. and then move them to China, taking away more American jobs. The report recommends that U.S. policymakers act in a bi-partisan manner to welcome Chinese investment, instead of relying on some U.S. states to negotiate with Chinese investors.

 

For further coverage on Chinese FDI potential in the U.S., please see the following news sources and commentary:

New York TimesAs China Invests, U.S. Could Lose

China Daily – “US scholars give stern warning on China’s FDI

People’s Daily – “Report: Chinese FDI has “great potential” to benefit US

CNN – “Chinese investors still searching for U.S. welcome mat