Chinese companies fleeing the American market

Chinese companies fleeing the American market

Chinese companies are reducing their presence in the United States amid escalating trade conflicts between the two economic superpowers.

Get notifications for breaking news, our articles, and more!

Chinese investment in the United States fell sharply to $2.5 billion last year, its lowest level in a decade. mentioned From the Financial Times. This represents a sharp decline from 2016’s record high of $48 billion, according to an analysis by Rhodium Group.

Moreover, the assets of Chinese companies based in the United States also declined, indicating a challenging environment for Chinese investors. Adam Smith, a partner at law firm Gibson Dunn, commented: “Concern about China has become a bipartisan issue on which almost everyone can agree, rightly or wrongly.”

“One time we were a panda… everyone loved us but then we became a skunk and people were afraid to get close,” he says. pin nepresident America Wanxiang.

A survey conducted by the Chinese General Chamber of Commerce revealed that more than 80% of Chinese companies point to the impasse in bilateral relations as a major challenge. More than a third of them expressed concerns about the unstable foreign investment policies pursued by the United States.

Tougher US policies, including tariffs imposed by the former president on Chinese products Donald Trump Subsequent investment is prohibited Joe Biden In strategic sectors, combined with domestic subsidies, this has magnified the challenges facing Chinese companies.

State governments are also working to tighten restrictions on foreign investment. About 36 states have proposed laws restricting foreign ownership of land, a significant increase from 12 proposals last year. With China being the main target, 24 states have already enacted bans, according to the National Agricultural Law Center.

See also  Chip war: USA, Japan and EU raise new barriers to high technology for China. What will Beijing do now?

As trade tensions continue to escalate, experts and business leaders warn of potential negative impacts on US and global trade, while civil rights activists express concerns about potential discrimination against Chinese citizens.

known as Benzinga NeuroModified by Pooja Rajkumari

Benzinga Neuro’s GPT-4-based content creation platform leverages Benzinga’s comprehensive ecosystem — including native data, APIs, and more — to create rich stories at the right time for you. Find out more.

Image via Shutterstock

Leave a Reply

Your email address will not be published. Required fields are marked *