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



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.

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.

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.”

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