Tit for Tat? The Shape of U.S. Restrictions on Chinese FDI

In its ongoing pushback against Chinese trade and investment, the White House is reportedly mulling restrictions on Chinese investment that mirror the restrictions imposed by Beijing on U.S. investment. Since 2005, the United States has attracted approximately 10 percent of all outbound Chinese foreign direct investment, or FDI. The amount of Chinese FDI heading to the United States has grown tremendously since 2010 in parallel with more Chinese investment in developed markets, particularly in those that Beijing has sought to beef up domestically. Because of China’s tight investment policies, the possible move by U.S. President Donald Trump's administration could have a major impact on the billions of dollars Beijing pours into U.S. industries, especially sectors that China has prioritized for growth, such as technology, consumer goods and services....