FTSE 100 LIVE: US-China investment flows plummet to NINE YEAR low as tensions explode

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Investment, both direct and by companies between the two countries fell 16.2 percent to $10.9 billion in January-June. This is compared to the same period just one year earlier. Investment has been hurt by the coronavirus pandemic as well as the US-China tensions, according to figures from consultancy Rhodium Group. The current figure is a far cry from half-yearly totals of nearly $40 billion seen in 2016 and 2017.

Citing national security risks posed by Chinese technology firms, US President Donald Trump’s administration has sharply expanded actions to restrict Chinese companies.

This has included putting telecoms giant Huawei Technologies Co Ltd on its trade blacklist and ordering TikTok owner ByteDance to divest the short-form video app.

“At a time of rising discomfort with US-China technology integration numerous other companies – both Chinese firms operating in the US. and US firms with a presence in China may be forced to divest,” a research report said.

The report also said investment by US firms in China in the first half tumbled 31 percent to $4.1 billion, while investment by Chinese companies in the United States rose 38 percent to $4.7 billion


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