China’s direct investment in U.S. fell in 2017 due to changes in policies of both countries

Beijing. April 12. Silkroadnews - Chinese direct investments in the U.S. fell by more than 35% in 2017 due to changes in the policies of both countries, according to a joint report of the National Committee on US-China Relations (NCUSCR) and the research company Rhodium Group, People’s Daily Online wrote.
The value of consummated Chinese direct investment operations in the US fell to $29 billion in 2017, compared to a record $46 billion in 2016.
The value of recently announced Chinese acquisitions in the U.S. also fell 90% compared to the previous year, and the impact of this decline in investment had been felt on the local level.
“Planned greenfield projects were delayed, fewer jobs were added to Chinese payrolls compared to previous years and some Chinese companies even began seeking buyers for their U.S. assets,” the report said.
The report explains that China’s decline in investment last year was driven by two factors, caused by political changes in China and the United States, rather than the situation on the market.
On the one hand, Chinese regulators tightened control over external investments of large private companies to prevent irrational outbound investment deals.
On the other hand, the Committee on Foreign Investment in the United States (CFIUS), an interdepartmental committee that reviews foreign acquisitions in U.S. companies, has expanded its approach to considering Chinese investment.
Last year, an unprecedented number of Chinese transactions were delayed or canceled, as the parties did not receive approval from CFIUS.