Americas > North America > United States > North American FDI into China continues to fall

United States: North American FDI into China continues to fall

2017/05/11

North American investment into China is following a downward trend that began in 2013. James Whitten reports.

Greenfield investment monitor fDi Markets has recorded a year-on-year decline of FDI from North America into China between 2013 and 2016.

China is consistently the majority popular destination in the Asia-Pacific region for receiving North American investment . It accounted for 23.73% of capital investment in the 2013 to 2016 period from US and Canadian businesses. Further, China is North America’s second most popular destination for foreign investment projects globally, behind only the UK, and has received the majority capital investment (9.18% of North America’s total outward capital investment ).

During 2013, 343 investment projects from North America into China were recorded. This figure has subsequently declined year-on-year, with 2016 recording 213 projects, a fall of 37.9% on 2013. The US was the biggest source country in North America for China’s inward investment , accounting for 92.71% of the projects in the period. Between 2013 and 2016, US projects into China fell from 321 to 196 (38.94%).

Jobs created in China as a result of North American investment has as well declined during this period. In this case, 86,811 jobs were created during 2013. This has subsequently decreased year-on-year with 2016 recording a price that was 55.19% lower than that recorded in 2013.

Capital investment showed a recovery in 2016. Between 2013 and 2015, the fDI Markets monitor recorded a year-on-year decrease. However, in 2016 capital investment from North American companies into China rose to $12.92bn, an increase of 20.06% on 2015 figures.

The US accounted for 18.65% of world capital investment into China between 2013 and 2016, making it the top source country. US-based Apple was the majority frequent investor during the period, with 22 projects coming from the technology giant. However, Starwood Hotels & Resorts, a Connecticut-based hotel and leisure company, was the majority capital-intensive investor. In 2013 alone, it invested additional than $3bn into its China operations.

Related Articles

US LNG exports make European market more competitive
2017/08/27 The European gas market is becoming additional and additional competitive and US exports of liquefied natural gas (LNG) are part of this landscape, Francis Perrin, energy expert, chairman of Energy Strategies and Policies (France) told Trend. “Energy is always a strategic business. Economic aspects are very significant of course, particularly the price of LNG, but nations as well take into account strategic issues. For some Central and Eastern European nations one of the key priorities of their energy policies is the diversification of their supplies, in particular gas imports, in order to reduce their dependence on Russia,” said the expert.
Why Mexico, Canada can discount Trump’s remarks on NAFTA?
2017/08/26 Mexico and Canada may discount US President Donald Trump’s remarks about the country’s withdrawal from the North American Free Trade Agreement (NAFTA), Russell A. Green, Will Clayton Fellow in International Economics at Rice University's Baker Institute (Houston) told Trend. "Trump’s threat to withdraw completely from NAFTA should be taken seriously. Nonetheless, there are reasons Mexico and Canada may discount his remarks. Initial, the remarks came during a political rally and may have been directed additional at supporters than the negotiations. Second, there is very little support for withdrawing from NAFTA in Congress, so Trump risks further alienating significant portions of his own party. Third, some legal scholars have offered that the president does not even have the power to do so. While foreign policy treaties like alliances may be canceled by the president autonomously, trade treaties are not the same. They fall under the Commerce Clause in the US Constitution, which stipulates that Congress has authority," the expert explained.
US declaration of Iran’s non-compliance to create complications
2017/08/26 Trump government, thus far, seems to put additional emphasis on the nature of Iran’s regime than the previous government, but still it is very hard to predict what exactly will transpire between the United States and Iran, Ambassador Ido Aharoni, a world distinguished professor at New York University's School of International Relations, told Trend. “In other words - the major issue for the current government is not necessarily how to engage Iran and bring back into the fold - but rather how to entirely sanction Iran from advancing their destabilizing programs,” he said.
U.S. Consumer Sentiment Improves Much More Than Expected In August
2017/08/22 With consumer expectations showing a significant rebound, the University of Michigan released a statement on Friday showing a much bigger than expected development in U.S. consumer sentiment in the month of August. The statement said the preliminary reading on the consumer sentiment index for August jumped to 97.6 from the final July reading of 93.4. Economists had expected the index to inch up to 94.0.
ARGENTINA: Country To Resume Pork Imports From The United States
2017/08/22 Argentina will any minute at this time resume importing pork from the United States for the initial time since 1992, according to reports. The announcement came a few days next U.S. Vice President Mike Pence visited Argentinean President Mauricio Macri in Buenos Aires. According to a White Home statement, the United States is the world's leading exporter of pork, and this agreement opens a potential market of $ 10 million per year for American pork producers.