trending Market Intelligence /marketintelligence/en/news-insights/trending/6JiNLFfPyvop6_EotAoemA2 content esgSubNav
In This List

US investments in China were above average in H1 amid trade war, says Rhodium

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


US investments in China were above average in H1 amid trade war, says Rhodium

U.S. firms invested $6.8 billion in China during the first six months of 2019, compared with an average of $6.7 billion over the previous two years for the same period, according to consultancy firm Rhodium Group LLC.

About 79%, or $5.4 billion, of U.S. foreign direct investment into China in the first half was for greenfield projects, such as the construction of the Shanghai unit of electric vehicle manufacturer Tesla Inc., Rhodium said in a report.

U.S. firms invested $1.4 billion in merger and acquisition deals in various sectors including information and communications technology and real estate.

While the information and communications technology sector saw a slowdown in investments, private equity firm Bain Capital Private Equity LP's $570 million funding for Xiamen Qinhuai Technology and its subsidiary Beijing Qinhuai Technology Co. Ltd. aided FDI recovery in the sector, the report said.

The consultancy added that some recently announced projects were withdrawn, especially in the information and communications technology segment, as a result of national security concerns.

China's FDI into the U.S. for the six-month period came in at $3.1 billion, higher than $2.6 billion in the previous year, but below the investment levels in 2013-2015, Rhodium Group said, adding that the drop was primarily driven by China's policies and market conditions.

The two-way capital flow between the countries fell to $13 billion in the first six months of 2019, which was the lowest six-month figure since 2014, according to the consultancy.

The national security policies in both the U.S. and China, if "implemented irresponsibly," could be an additional deterrent to the capital flow between the countries, Rhodium said.