Economy & Business

Study: Chinese Investment in U.S. Has Fallen 88 Percent Since Trump Took Office

President Donald Trump answers questions on the South Lawn of the White House in Washington, D.C., July 15, 2019. (Leah Millis/Reuters)

Chinese investment in the U.S. has plummeted 88 percent since President Trump took office, from its record level of $46.5 billion in 2016 to just $5.4 billion last year, according to the Rhodium Group, an economic-research firm.

Among other factors, Trump’s heavy tariffs on Chinese imports have contributed to the massive drop. The White House raised tariffs on $200 billion of Chinese imports from 10 percent to 25 percent in May, after accusing Beijing of reneging on the previously-agreed terms of a trade deal. The U.S. also currently has a 25 percent tariff on $50 billion worth of Chinese high-tech products.

China, in response, has slapped tariffs of up to 25 percent on $60 billion worth of U.S. products.

Besides the Trump administration’s tariffs, slowing economic growth and the Chinese government’s capital controls on foreign investments have factored into declining investment in America. Over $12 billion worth of Chinese-owned overseas assets were listed for sale last year due to such capital controls, which are intended to prevent money from leaving the country’s economy.

China hinted over the weekend at restarting trade negotiations with U.S. officials after talks collapsed earlier this year. Chinese companies have reportedly inquired about purchasing agricultural products from U.S. exporters in a positive sign for the future of the talks.

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