Quantcast
Connect with us

Trump’s trade war with China has led to foreign investments in the US drying up: report

Published

on

Not only are U.S. manufacturers and farmers feeling the devastating brunt of Donald Trump’s ongoing trade war with China — among other countries — now the New York Times reports that foreign investors no longer see America as a safe bet to park their money.

According to the report, “the once steady flow of Chinese cash into America, with Chinese investment plummeting by nearly 90 percent since President Trump took office.”

ADVERTISEMENT

With the report stating, the drop-off “stems from tougher regulatory scrutiny in the United States and a less hospitable climate toward Chinese investment, as well Beijing’s tightened limits on foreign spending,” one analyst blamed the increasingly hostile trade relationship between the two countries.

“The fact that the foreign direct investment has fallen so sharply is symbolic of how badly the economic relationship between the United States and China has deteriorated,” explained Eswar Prasad, former head of the International Monetary Fund’s China division. “The U.S. doesn’t trust the Chinese, and China doesn’t trust the U.S.”

The Times reports that Chinese investments in the U.S. peaked at $46.5 billion in 2016 when Trump was elected, but have plummeted to $5.4 billion in 2018 — a stunning 88 percent decrease.

“A slowing economy and stricter capital controls in China have made it more difficult for Chinese investors to buy American, according to trade and mergers and acquisitions advisers,” the Times reports. “Mr. Trump’s penchant for imposing punishing tariffs on Chinese goods and an increasingly powerful regulatory group that is heavily scrutinizing foreign investment, particularly involving Chinese investors, have also spooked businesses in both countries.”

ADVERTISEMENT

Additionally, Chinese investors are bailing on purchasing commercial and domestic real estate in the U.S. wary of future relations between the two countries.

“Research released recently by the National Association of Realtors found that purchases of homes in America by Chinese buyers declined by 56 percent to $13.4 billion in the year to March,” the Times reports with Lawrence Yun, chief economist for the association remarking, “The magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.”

“The decline in investment could hurt areas that are already economically disadvantaged and that have become dependent on Chinese cash. States like Michigan have increasingly wooed Chinese investment, resulting in new factories and jobs in a part of the country that has struggled to recover from the Great Recession,” the reports states, leading Craig Allen, the president of the U.S.-China Business Council, to say it will harshly impact areas considered Trump country.

ADVERTISEMENT

“The not-so-welcome mat is out, and it is having a deleterious effect on relatively poorer areas in the United States that need jobs,” he said. “The Chinese hear from our state and local officials that they’re welcome,” Mr. Allen said. “What they’re hearing from federal officials is quite different.”

You can read more here.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from billionaires and corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

2020 Election

Rick Wilson warns ‘Donald Trump is not a well man’ and is now ‘speaking in tongues’

Published

on

President Donald Trump is mentally unwell, a top strategist explained on MSNBC on Thursday.

"A few 24 hours after a sustained presidential performance that even by Donald Trump’s standard qualified as unhinged and unnerving, the world is reeling and offering a collective judgment of omg and wtf. That is a concise summary of this morning’s headlines," anchor John Heilemann reported.

"To help you grasp the full scope of the presidential meltdown, we offer you this," he said, introducing a clip of Trump.

"This string of absurdities might seem mildly funny at times but to Trump’s own former aides, what they witnessed in recent days crossed the threshold from amusing to alarming," he explained.

Continue Reading

2020 Election

Ex-Trump official bashes White House ‘apologists’ who haven’t quit yet: ‘There’s not much hope for them’

Published

on

A report on the silence coming from first daughter Ivanka Trump and her White House advisor husband Jared Kushner after Donald Trump attacked American Jews turned to the future of White House aides who are either complicit in the president's policies or stand idly by as he lurches from controversy to controversy.

In an interview with CNN's Brianna Keilar, former Trump adviser J.W. Verret pointed out there are still some "adults in the room" with Trump, but CNN's Kaitlan Collins first pointed out that -- as of late -- Ivanka and Kushner are not among them.

"This fits a pattern that we've seen from Jared Kushner and Ivanka Trump at times during times when the administration tried to repeal parts of Obamacare, and of course, the big one the president has made about Jewish people who are supporting Democrats," Collins explained. "Jared Kushner and Ivanka Trump are both Orthodox Jews. They've been involved with the president on many things. but neither of them have said anything publicly about the president's comments. and when we asked the white house have they been advising the president privately on this, the White House did not get back to us."

Continue Reading
 

2020 Election

‘Unhinged, erratic and nuts’: Conservative warns Trump’s ‘chosen one’ outburst should set off alarms

Published

on

In her column for the Washington Post, conservative never-Trumper Jennifer Rubin implored Republicans to look deep down inside themselves and stop defending Donald Trump after the president bizarrely declared himself the "chosen one" while speaking to the press on Wednesday.

Under a headline, "Trump’s unhinged display should frighten everyone,"Rubin ticked off comments made by the president in the past week since he returned from vacation including expressing a desire to buy Greenland, proposing -- then backing off -- new tax policies and calling Jews "disloyal" and wondered what it will take for people to see that the president is "nuts."

Continue Reading
 
 

Thank you for whitelisting Raw Story!

As a special thank you, from now until August 31st, we're offering you a discounted rate of $5.99/month to subscribe and get ad-free access. We're honored to have you as a reader. Thank you. :) —Elias, Membership Coordinator
LEARN MORE
close-link
close-image