As part the U.S.-China Investment Project, a multi-year research initiative led by NCUSCR and Rhodium Group, we have released the 2019 Two-Way Street update, with new data and analysis of U.S.-China capital flows.
Key findings include the following:
Two-way foreign direct investment (FDI) dropped 60% in 2018, amidst political frictions, expanded U.S. investment screening, and Beijing's persistent capital controls.
Chinese FDI in the United States fell by more than 80% last year, and was actually negative when accounting for divestitures.
Venture capital flows, on the other hand, continued to grow in both directions, and—at $22 billion—surpassed bilateral FDI for the first time.
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