China’s Coming FDI Offensive
When China invests in the US what will your take be?
Here’s one:
A report released today by The Asia Society’s Center on U.S.-China Relations along with the Kissinger Institute on China and the U.S. may well mark the return of a national debate last bruited in the US two decades ago: Should we worry about or welcome massive inflows of Foreign Direct Investment (FDI) from a major economic competitor?
The last time around it was Japan that had politicians and pundits decrying that country’s growing stake in the US economy. This time China is set to take center stage as it begins the inevitable transformation from being the developing world’s biggest market for FDI to becoming a major source of foreign capital. The report estimates that China’s outward FDI will total $1-2 trillion by 2020, and notes that its investment in the US is already doubling annually — albeit from a very low base.