Chinese investors ‘facing severe situation in the US’
- Rating of US as investment destination for Chinese firms falls 10 places to 14th out of 57 countries rated
- Chinese government think tank now sees US investment environment as on par with Russia and Poland
Chinese firms have been warned that the investment environment in the United States is rapidly deteriorating in a report that also called for more government protection for the country’s increasing overseas interests.
In its sixth annual report evaluating country-specific investment risks, the Institute of World Economics and Politics, a government think tank under the Chinese Academy of Social Sciences, ranked the United States investment environment as number 14 out the total of 57 countries, a drop of 10 places from a year ago.
The institute also gave the world’s largest economy an “A” rating, the third highest tier, meaning investment risks are “moderate”. Other countries that fall into that category include Poland and Russia.
Zhang Ming, who led the research for the institute, attributed the downgrade to the trade war that started last July as well as a number of deep-seated problems.
These included growing US concerns about national security, the now-repealed ban on the sale by US companies of components to ZTE and the scuttling of some landmark Chinese investments in the US.