Chinese Investment in US Drops to Lowest Level Since Global Financial Crisis

May 11, 2020 Updated: May 11, 2020

WASHINGTON—Chinese investment in the United States dropped to $5 billion in 2019, a slight decrease from a year earlier and the lowest level since the global financial crisis a decade ago, according to a new analysis by the U.S.-China Investment Project.

The analysis attributed the investment slowdown to Chinese restrictions on outbound capital, more regulatory oversight in the United States, slower Chinese economic growth, and rising tensions between the two nations.

Relations between the United States and China have deteriorated in recent weeks as the CCP (Chinese Communist Party) virus has spread across the globe.

President Donald Trump said on May 8 he was undecided about whether to end the so-called Phase 1 U.S.-China trade deal, just hours after top trade officials from both countries pledged to press ahead with implementing it despite the virus economic wreckage.

Chinese Vice Premier Liu He and U.S. President Donald Trump
Chinese Vice Premier Liu He and President Donald Trump display the signed trade agreement between the United States and China in the East Room of the White House in Washington on Jan. 15, 2020. (Saul Loeb/AFP via Getty Images)

Trump, who has blamed China’s handling of the CCP virus outbreak in Wuhan in late 2019 for causing thousands of deaths and millions of job losses in the United States, has threatened to terminate the trade deal if China fails to meet its purchase commitments.

The report, released on May 11, shows that Chinese investment into the United States had slowed even before the pandemic.

The US flag flies
The U.S. flag flies over shipping cranes and containers after a report said the United States and China are close to reaching a major trade deal that would see both sides lower some of the tariffs imposed during an often-bitter trade war, in Long Beach, Calif., on March 4, 2019. (Mark Ralston/AFP via Getty Images)

Stephen Orlins, president of the National Committee on U.S.-China Relations, one of the groups behind the report, said in a foreword that both countries should resist a retreat to “economic nationalism” in the event of a global recession.

U.S. investment in China increased slightly in 2019 to $14 billion, up from $13 billion a year earlier, according to the analysis.

However, the pandemic has put additional pressure on U.S. companies in China, raising questions about whether to move operations out of the country to diverse supply chains, the report said.

By Ted Hesson

Epoch Times staff contributed to this report.