US-China investment plunges to 9-year low amid tensions between the two countries

US-China investment plunges to 9-year low amid tensions between the two countries

US-China investment plunges to 9-year low amid tensions between the two countries

HONG KONG (Reuters) – Investment between the US and China fell to a nine-year low in the first half of 2020 amid tensions between the two countries, a study found.

Investment, including direct investment by companies and venture capital flows, between the two countries fell 16.2% to $ 10.9 billion in January-June compared to the same period last year – including due to the effects of the pandemic, according to the consulting company. Rhodium Group and the non-governmental organization National Committee on US-China Relations.

This is well below the half-yearly figures for 2016 and 2017 of almost $ 40 billion.

Financial flows are unlikely to recover this year, regardless of the outcome of the US presidential election, the report said, as “systemic concerns about Chinese investment in high technology, critical infrastructure and personal assets will not subside.”

“In a period of growing tensions over Sino-US technological integration, many other companies — both Chinese firms operating in the US and US firms based in China — may be forced to sell their assets,” the report said.

(Alun John, translated by Elizaveta Zhuravleva. Editor Marina Bobrova)

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