U S -China Economic and Security Review

Chinese Investment in the United States U S -China Economic and Security Review

China's economic activities are having a clear and direct impact on the lives of average Americans. This impact is evident in the rise of Chinese investment in advanced sectors of the U. S. economy, including semiconductors and biotech, even as the Chinese government continues to restrict the ability of U. S. companies to invest in the same sectors, raising serious concerns for U. S. economic interests and national security. As the Trump administration prepares to formulate policy towards China, it is important to separate fact from fiction in the discussion of the key drivers and impacts of China's economic activities in the United States. According to data from the Rhodium Group, Chinese investment flows to the United States have grown steadily in recent years, reaching nearly $46 billion in 2016, a threefold increase from 2015. The speed of this investment flow growth coupled with a lack of reliable government data, both in China and the United States, has hindered efforts to accurately analyze trends in Chinese investment while also masking some of the risks and benefits these investments present to the United States. Even with limited official information, however, it is clear that Chinese investment is targeting sectors of strategic importance to the United States economy.