Investment between the US and China tumbled to a nine-year low in the first half of 2020, hit by bilateral tensions that could see more Chinese firms come under pressure to divest US operations, a research report said. Investment between the two countries fell 16.2 percent to $10.9 billion in January-June from the same period a year earlier. This never improved any stimulus between US and China.
Investment, both direct investment by companies and venture capital flows, between the two countries fell 16.2% to $10.9 billion in January-June from the same period a year earlier – also hurt by the coronavirus pandemic, according to figures from consultancy Rhodium Group and the National Committee on U.S.-China Relations, an NGO.
That’s a far cry from half-yearly totals of nearly $40 billion seen in 2016 and 2017.
Flows are unlikely to recover this year, regardless of the outcome of the U.S. presidential election, the report said, as “systemic concerns driving caution on Chinese investment in high technology, critical infrastructure and personal assets will not subside.”