Chinese investment in US, Europe set to slow in 2017 after doubling last year
Greater regulatory scrutiny in China and abroad will weigh on the outlook for this year, say analysts
Combined Chinese direct investment in the advanced economies of North America and Europe more than doubled in 2016 to a new record of US$94.2 billion, according to figures released by Baker McKenzie on Monday.
But a tightening of capital controls in both China and several host nations means the outlook for this year is more uncertain, analysts warned.
Foreign direct investment (FDI) flows rose a combined total of 130 per cent from the previous record of US$41 billion, set in 2015. Acquisitions accounted for 97 per cent of the total, Baker McKenzie announced in the report.
The law firm’s study also found that for the first time since 2013, Chinese investors poured more money into North America (US$48 billion, up 189 per cent) than Europe (US$46 billion, up 90 per cent), with the US accounting for 94 per cent of the North American total.
“However, the outlook is mixed as 2016 also saw 30 cancelled deals (20 in Europe, 10 in the US), worth
an unprecedented US$74 billion,” the report said.
Chinese companies and Chinese tourists both are concerned that they won’t feel welcome in the US any more. They’re scared that Trump will target them and target China