Chinese investment in US declines 73% in 2018 - Reuters
|According to Reuters, Chinese investment in the domestic US collapsed -73% as the two countries' tariff spat continues to see escalating real-world effects, with US restrictions sapping foreign money access to US companies and China's clampdown on escaping capital from the mainland.
Key quotes
Chinese foreign direct investment into North America and Europe fell by 73 percent to a six-year low last year as the United States tightened scrutiny of deals and Chinese restrictions on outbound investment bit, law firm Baker & McKenzie said.
Completed Chinese FDI deals in the two Western regions fell to $30 billion in 2018 from $111 billion the year before, Baker & McKenzie said in a report prepared with research firm Rhodium Group.
“Some deals are still getting done despite new investment screening regulations, trade tensions and Chinese investment controls,” said Michael DeFranco, global head of M&A at Baker McKenzie.
“But all parties in a prospective transaction need to conduct plenty of due diligence and take in-depth regulatory advice to assess if a deal is viable.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.