The Heritage Foundation - October 2013
China's investment in the U.S. and around the world saw moderate growth in the first half of 2013. The China Global Investment Tracker created
by The Heritage Foundation is the only publicly available,
comprehensive dataset of large Chinese investments and contracts
worldwide (excluding bonds). Details are available on over 900 attempted
transactions -- failed and successful – valued at more than $100
million in all industries, including energy, mining, transportation and
finance.
China’s Global Investment Rises: The U.S. Should Focus on Competition
China’s 2012 outbound investment set new records. North America jumped
to the forefront of Chinese business activity, but this is likely to be
temporary: Chinese enterprises move as a group from region to region.
Energy and metals draw the most money. The outlook for Chinese
investment is positive, but setbacks will continue to occur, due in
part to foreign suspicion of state firms. The U.S. should formulate
policy to ensure competition, with the Chinese firms that come here, in
the Chinese market, and around the world through the Trans-Pacific
Partnership and other agreements that liberalize market access.
Chinese Outward Investment: Acceleration Features the U.S.
Chinese outward investment strengthened in the first half of 2012. The
leading recipient of new Chinese investment was the U.S., recovering
sharply from a very weak 2011. Unsurprisingly, energy is still the main
target for investment but, in addition, transportation construction
contracts are prominent while investment in the financial sector
receded. The best policy for the U.S. is to continue to outpace China
by opening markets around the world to American investors.
Chinese Outward Investment: More Opportunity Than Danger
Chinese investment is not taking the world by storm financially, nor
will it in the near future. It does not pose a major threat to the
U.S., either in the purchase of American assets or expansion of Chinese
influence around the globe. At home, U.S. policy concerning Chinese
investment should be more transparent. Overseas, the best reply is to
expand American commercial influence--for instance, through free trade
agreements. These steps will help to create more economic opportunities
in the U.S. and enhance America's global position.
To see the Interactive Map......
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