Chinese Investment Into US Fell to $29b, as Trade Disagreements Stay High

Forex News

Taking into account the trade relations between the US and China, it is possible that the tension in trade can become a protracted reality, that puts as much as $400 billion in investment at risk within the two largest economies of the world. Since China has limited travel capital, and the Trump administration has taken a tough stance on deals, Chinese investment in the US fell to $29 billion from $46 billion. At the same time, US investment in China has changed little, and amount to $14 billion.

US companies invest $256 billion in Chinese firms, and Chinese companies have invested about $140 billion in the US. According to a report of Rhodium Group and the US-China committee, the Chinese firms added about 7.400 US employees to their payrolls in 2017, the smallest increase in five years.

Markets still hope, that the two nations will be able to negotiate a settlement to prevent imposing the fees in full. China President Xi Jinping delivered a calm speech at the highly anticipated Boao Forum for Asia. Xi also talked about the plans to further open up the massive Chinese markets to foreign investments. The measures would include “significantly” lowering import tariffs for autos, enforcing intellectual property protection, and improving investment protections for foreign companies.