China Investment in U.S. Falling Sharply

Dan Industry News Release, Trade

Chinese investment in the United States has dropped 92 percent so far this year, amidst the tit-for-tat trade war launched by President Donald Trump.

investmentAnalysts say the trade war may be hindering China’s economy. A Chinese investment analyst told the South China Morning Post that “China’s economy is slowing, its currency weakening, and the trade regime is faltering.” A market researcher told the publication that Trump’s trade policies and China’s curb of capital outflow “cast a shadow” on the relationship between the two nations.

U.S.-based JP Morgan recently downgraded China’s stocks and predicted a “full-blown” trade war with the United States. Rumors are circling now that the trade war, however, may be starting some social unrest in China, which would prompt the nation to engage with the United States. The trade war is shifting agricultural markets and where China is sourcing commodities such as soybeans. However, the low price of U.S. commodities is attracting other export markets.

Source: National Association of Farm Broadcasting News Service.