|
The main culprit was government policy on both sides of the
Pacific, namely Beijing's efforts to crack down on outbound
capital flows and Washington's intensified screening of Chinese
acquisitions in America, said the report issued on Tuesday.
The report by the New York-based consultancy and the non-profit
business lobby comes at a time of heightened friction between
China and the United States over trade, and warns that "policy
bellicosity especially from Washington" was casting a darker
shadow over the economic relationship.
"This more problematic political environment is likely not just
transient but rather the new normal. Changing policy attitudes
on both sides are deep-seated, not just tactical ploys," said
the report.
In 2017, the value of announced foreign direct investment deals
from China into the United States plummeted by more than 90
percent from the year before, while much of the money that
continued to flow into America was carryover from 2016 deals,
the report said.
Average deal values dropped to $215 million from $356 million,
it said.
It said planned greenfield projects were delayed, fewer jobs
were added to Chinese payrolls in America compared to previous
years and some Chinese companies even began looking for exits.
The "policy attitudes" behind the falling numbers were "unlikely
to reverse fully anytime soon, suggesting that lower levels of
investment will persist in the near term", it said.
American investment in China, meanwhile, was basically flat at
$14 billion last year from $13.8 billion the year before, it
said.
(Reporting by John Ruwitch; Editing by Jacqueline Wong)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
