International trade and foreign direct investment (FDI) are considered the key drivers of global value chains. About 11 percent of economic activity (GDP) in the U.S. is dependent on foreign markets. But when relations sour between countries as they have between two of the world’s largest economies, foreign investments can dry up and put thousands of jobs in jeopardy. That’s why reports that Chinese investments in the U.S. have plunged nearly 90 percent under President Trump’s watch is quite disconcerting. According to data by the Rhodium Group, Chinese FDI in the U.S. has fallen from a peak of $46.5 billion in 2016 to just $5.4 billion last year, sharply reversing a trend of rising investments from the Far East. Much of the blame for the massive decline can be pinned on amped up regulations, a battery of tariffs and growing unease by the U.S. on China’s expanding global influence.
The apathy is not mutual though, with American FDI into China only declining slightly from $14 billion 2017 to $13 billion in 2018. After lagging for years, China managed to overtake the U.S. in two-way FDI for the first time in 2015– the balance has now shifted back to the U.S….CLICK for complete article