Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Insights
    3. Alerts
    4. Collaboration and competition: China/U.S. investment trends updateAlerts

    Alert / China Law Alert

    Collaboration and competition: China/U.S. investment trends update

    July 25, 2019

    Share

    By David Cheng and David Kaufman

    Investment between the U.S. and China is being impacted by competitive feelings and collaborative sentiments. How can investors navigate between these conflicting emotions?

    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.

    1. Even if a more general trade deal is made between the United States and China, investment by China in the areas of technology, especially digital technology, will continue to be problematic given national security, privacy, and intellectual property protection concerns. There appears to be bipartisan support in the United States for enhanced scrutiny of this sector. Therefore, it is unlikely that these increased barriers and obstacles will be eliminated by any trade deal or even a change in administration.
    2. There will be opportunities, however, for cross-border investment to occur, in both directions, in the areas of health care, clean energy, food & beverage, consumer products, entertainment, agriculture, and industrial equipment. In addition, the opening of China’s economy earlier and wider to investment in the financial services sector creates opportunities and, perhaps, creates a road map for more investment in the large Chinese services segment by U.S. companies.
    3. We see continued political and popular support for people-to-people connections between the U.S. in China—including travel/tourism and education. These sectors have experienced a slight drop-off in activity in the last year, but they also have seen spectacular growth in the last few years. They are likely to see increased investment from both domestic and international sources.

    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.

    Locations

    ShanghaiHong Kong

    Practices

    International ServicesInternational Trade, Transportation & MaritimeChina

    Insights And Happenings

    • Alert

      Making sense of the big, beautiful monster trade deal: Part #1

      Jan 21, 2020
    • Alert

      Ahead of Phase One details, Chinese government lays out 2020 priorities

      Dec 20, 2019
    • Alert

      Hong Kong introduces an “original grant” patent system

      Dec 9, 2019

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL