Chinese investments in the U.S. have plummeted since Trump's first term. The trend is unlikely to reverse
Published On Jan 19, 2025, 11:54 PM
Chinese investments in the U.S. have significantly decreased since Trump's first term, showing little sign of recovery as he returns to power. Analysts believe new tariffs and a tough U.S. stance will discourage Chinese companies from increasing their investments. The amount of Chinese investment has dropped from a peak of $46.86 billion in 2017 to just $860 million in the first half of 2024. Although some smaller joint ventures continue, large-scale acquisitions are unlikely in the foreseeable future, further constraining potential investment growth.
Stock Forecasts
SPY
Negative
Given the reduced Chinese investment in the U.S. and the expected continuation of tariffs and regulatory challenges under the Trump administration, companies that are heavily reliant on Chinese investment may face challenges. Industries such as technology and real estate (that used to benefit from such investments) may experience slow growth. Investors might consider looking into U.S. companies that can benefit from reduced competition due to less Chinese investment in specific sectors.
Related News
The stock market has never looked like this before — regardless of who's president
Jan 19, 2025, 9:00 AM
Donald Trump enters office after a rip-roaring rally in stocks has brought the market to stretched valuation levels amid an uncertain policy path.
Trump's inauguration looms as earnings season rolls on: What to know this week
Jan 19, 2025, 7:41 AM
The stock market is bracing for a busy week of political news as Donald Trump returns to the Oval Office.
Trump makes the Fed's challenging inflation fight more complicated
Jan 18, 2025, 11:38 AM
Inflation was a top concern for central bank leaders in 2024. Donald Trump could make the fight against higher prices even more difficult.