Yoshida in China: Beijing's U.S. investments and economic security

Yoshida in China: Beijing's U.S. investments and economic security

NEW YORK – Chinese investment in U.S. companies was "hardly noticeable before, but now it is rising sharply," according to a new report released by the U.S.-China Economic and Security Review Commission.

Should we be worried? Is this some sort of Trojan horse?

I wouldn’t go that far.

The report to Congress, “An Analysis of Chinese Investments in the U.S. Economy,” offers a detailed look at China's foreign direct investment (FDI) in the U.S. and the potential economic benefits.

The cumulative value of Chinese investments grew to $30 billion through the end of 2011, compared to $5.8 billion at the end of 2010. As the chart below shows, Chinese FDI here has been rising steadily over the last decade. What sectors is China targeting with its U.S. investments and what if any strategy can we divine from these statistics?


China's Foreign Direct Investments, 1982-2010
(Unit: Billions of dollars)
TAG:China Investment The United States