Source: http://www.CRNTT.com 2014-07-30 17:22:46
China's sustained economic growth driven by foreign investment is stronger than expected. Chinese companies have also begun to seek external expansion and make overseas investments in Europe and the United States. With China's continuing opening up and liberalization, the mutual Chinese and US investments will also continue to increase.
China Watch quoted Thilo Hanemann, Research Director at Rhodium Group (RHG), as saying that, in the process of global foreign investment, China is still at the early stage; but with the economic changes, the overseas investment of the world's second-largest economy will undergo structural increase.
Hanemann at http://www.cnyes.com/ said that that the United States in the next decade will witness large Chinese capital inflows. But the actual amount will depend on several factors including the relative attractiveness of the American economy, the competiveness of Chinese enterprises in such a mature market like the United States and the progress of openness in maintaining two-way investment on both sides.
Hanemann said that, regardless of the annual trend, China has gradually become an important investor in the United States and that, in view of the size of China's economy and its maturity, this is a natural process. In 2013 China’s investment in the United States doubled to US$14 billion. For the first half of 2014, the investment was more than US$10 billion; the main investment target was the US high-tech industry, accounting for more than US$6 billion. For the first quarter of 2014, China's overseas investment in the US was slightly lower than the total of the second half of last year; the focus turned from the acquisition of assets into real estate properties, high-end services and manufacturing.
The RHG in a report released in April estimated that the amount of Chinese investment in the US high-tech industry will grow to US$1-2 trillion in 2020.
Although the United States is now very open to Chinese investment, China must quickly enhance its competitive advantage. Gary Clyde Hufbauer, Reginald Jones Senior Fellow at the Peterson Institute for International Economics, also agreed that Chinese investment in the United States will grow dramatically in the next decade. In addition, he also said that if Chinese President Xi Jinping really executes liberalization, American investment in China will also experience substantial growth.