Investment between the U.S. and China fell to a nine-year low in the first half of 2020 amid tensions between the two countries, the study found. Investment, including direct investment by companies and venture capital flows, between the two countries fell 16.2% to $10.9 billion in January-June compared to the same period last year - including due to the effects of the pandemic, according to consulting company Rhodium Group and nongovernmental organization National Committee on US-China Relations.
This is well below the half-yearly figures for 2016 and 2017 of almost $40 billion.
Financial flows are unlikely to recover this year, regardless of the outcome of the US presidential election, the report said, as "systemic concerns about Chinese investment in high technology, critical infrastructure and personal assets will not subside."
"In a period of growing tensions over Sino-US technological integration, many other companies — both Chinese firms operating in the US and US firms based in China — may be forced to sell their assets," the report said.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 76% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.