An Analysis of Chinese Investments in the U.S. Economy

by Sabrina I. Pacifici on November 7, 2012

“The U.S.-China Economic and Security Review Commission has released a new report, An Analysis of Chinese Investments in the U.S. Economy, detailing sectoral and regional patterns of Chinese foreign direct investment (FDI), economic benefits for the U.S. economy, and U.S. regulation and oversight. The report finds that Chinese investment in U.S. companies is rising sharply, with estimates of the cumulative value of Chinese investments ranging up to $30 billion through the end of 2011, compared to official estimates of $5.8 billion through 2010. The Chinese government has altered its policy guidance to promote FDI, encouraging investments in more developed economies like that of the United States with goals that include securing energy and mineral resources and acquiring advanced technologies. The economic benefits of Chinese FDI in the United States have been modest, including the creation of 10,000 to 20,000 jobs in Chinese-owned firms in the U.S. over the past five years, and stabilization of some financially troubled companies.”

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