Listen to this articleThe joint studies of the National Committee on U.S-China Relations and the Rhodium Group has indicated that the value of deals in 2017 dropped by at least 90% from previous year. The report mentioned that policy changed in both countries and lead to decline. Point to be noted that China has cut-back previous investments and the U.S has shown its concerns regarding deals due to national security issues. This situation widely changed policy environment and patterns of foreign direct investment. The report further indicated that it would continue in reshaping investment levels in the future. At least 29 billion U.S dollars of investments in the U.S completed last year by Chinese firms. They also completed the investments record of 46 billion U.S dollars in 2016 and it is 35% more to the investments made in 2017.
The report also indicated that if transaction announced before 2017 will not be included then the completed value of deals could drop by 74%. The politicians in the United States have shown their concerns that Chinese companies are specifically targeting investments at U.S military and technologies related to its security. It is important that the U.S Committee on Foreign Investment reviewed transactions last year for national security risk and stopped deals worth 10 billion U.S dollars. The U.S President Trump also asked its administration to find new ways in limiting Chinese investment in the United States. The U.S Congress will finalize the new legislation and U.S federal government will be more powerful in reviewing business deals for national security issues.
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