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American Investors Ignoring the US/China Trade War

Massive Investment in China from the US

China’s fast-growing local economy and consumer market is attracting investment from America with several industry leaders committing to China, despite the trade war going on between the United States and China.

In the first half of 2019, American companies invested as much as $6.8 billion into China, which is an increase of 1.5% in comparison to the same time period in the most recent two years. A large proportion of this investment was allocated to green technology projects such as the Shanghai Tesla factory. Other significant deals include a $570 million investment in Beijing Qinhuai, a data centre provider, and several large-scale construction projects scheduled over several years. Sportswear manufacturer Nike confirmed that they would increase production in China with the goal of serving the local markets.

US Companies Not Heeding President Trump’s ‘Order’

According to Ker Gibbs of the American Chamber of Commerce in China, American companies with a presence in China plan to continue investing and expanding to other Chinese cities because consumer growth in China continues to remain robust. There has been a slight decline in the worth of new projects, especially in the IT and communications industries this year, which is most likely due to the trade war, but American companies are by no means abandoning China as an investment destination. This, regardless of the US president Trump ‘ordering’ American companies to back away from China.

Making it Easier for Investors

Gibbs from the American Chamber of Commerce in China stated that the Chinese government is hospitable towards Americans and warmly welcome investments from abroad, often going out of their way to assist companies in their goals. China used to be considered as a hub for exports but production for local consumers is significantly increasing. Over 75% of China’s economic growth was a result of consumer spending. With this “in China, for China” strategy, foreign investors like Nike have a growing market.

Source:
https://www.ft.com/content/cabf76d4-c5a1-11e9-a8e9-296ca66511c9

14 thoughts on “American Investors Ignoring the US/China Trade War”

  1. Markets are open but human interaction is closed. Winner takes all here, and war doesn’t exists unless there is a build up before hand. Not sure if china is an enemy, but no diversity and strong culture background smell likes trouble for the usa. Investments don’t cause war, uncontrollable people do, and moral standards.

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  2. Without trade war it is possible to expand business area in other region. They know that avoiding trade war and focus on consumer needs is all that they need.

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    • Indeed… It is unfortunate that some world leaders enforce policies that hurt the free market, along with companies and consumers together.

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  3. The trade war is a myth! This is all about money and money! China will not take a lose nor will they give the USA a free line of credit!

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  4. Trump must be sad about it. Of course those investors will do as they please, money rules this world, he should know that more than anyone lol

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  5. Really does show that despite a trade war, investors always try to make money and aren’t largely effected by market situations.

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