China shuns U.S. for foreign investment, Heritage Foundation report shows

Chad Brady (admin)

China’s direct investment in the U.S. plunged in the first half even as its overall foreign acquisitions rose to a record, underscoring the nation’s efforts to diversify its portfolio, according to the Heritage Foundation.

China’s non-bond investments in the U.S. slumped 47 percent to $1.6 billion, while those in the rest of the world surged 34 percent to $29 billion, Derek Scissors, a Washington-based senior fellow at the group, said in a phone interview on Aug. 25.

Slumping direct investment in the U.S. mirrors China’s $51 billion reduction in purchases of Treasuries in the first half as it shifted part of the world’s largest foreign-exchange reserves out of dollars. The U.S. risks being “marginalized” in China’s non-bond investment plans because of opposition to its buying from lawmakers based on “China in our backyard hysteria,” Scissors said.

Full Story: China Shuns U.S. for Foreign Investment, Heritage Foundation Report Shows – Bloomberg