We learned this week that investment from China into the U.S. (according to the Rhodium Group) peaked at $46.5 billion in 2016, but has fallen to $5.4 billion last year. In contrast, U.S. investment in China in 2018 was $14 billion, which has been fairly constant since the end of the Great Recession in the previous decade. Meanwhile, U.S. China trade talks are set to resume next week. As investors contemplate the future’s somewhat murky waters, there are a few trends that we are seeing develop in the current China/U.S. investment dynamic which are marked by competitive feelings and collaborative sentiments.
While investment in the tech sectors and related fields will be constrained by fears of American and Chinese competition for the foreseeable future, we do see many investment opportunities where collaboration between the two nations could be both possible and profitable.
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