China's investment in the United States dropped by 88% in two years
18:16 - 22/07/2019
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China's investment in the United States has been growing for years, with funds being pumped into the automotive, technology and agricultural sectors, but this has changed in the midst of a trade war between the two countries.
China's direct investment in the United States fell 88 percent from a year earlier in 2016 to only $ 5.4 billion, while two years ago it was at $ 46.5 billion, the data showed.
In contrast, US direct investment in China declined in 2018 to $ 13 billion, from $ 14 billion in 2017.
"The fact that foreign direct investment fell sharply symbolizes the deterioration of economic relations between the United States and China," said former head of China's International Monetary Fund, Iswar Prasad, to the New York Times.
According to a study by the National Association of Realtors, US home purchases by Chinese in the period from April 2018 to March 2019 fell by 56% to $ 13.4 billion.
"The magnitude of the decline is very large, which indicates a decline in confidence in the real estate sector in the United States," said Lawrence Yun, a US real estate economist. Despite this decline, China has maintained its position as the largest foreign buyer of US real estate.
Beijing and Washington have been locked in a trade war since last year, during which countries exchanged tariffs in stages, most recently in May. The US administration raised customs duties on Chinese goods worth 250 billion dollars to 25 percent, bringing China an increase in tariffs to the same level on US goods Worth $ 60 billion.
However, US President Donald Trump and his Chinese counterpart Xi Jinping agreed at the G20 summit in Japan to calm down and resume trade negotiations between the two countries. Finished 25 s