- Chinese foreign direct investment into North America and Europe fell by 73 percent to a six-year low in 2018, Baker and McKenzie said.
- That’s as the United States tightened the security of deals and Chinese restrictions on outbound investment bit, the law firm said.
- Even after stripping out the effect of the $43 billion takeover of Syngenta by ChemChina in 2017, the underlying drop in deal volumes was 40 percent.
Chinese foreign direct investment into North America and Europefell by 73 percent to a six-year low last year as the United Statestightened scrutiny of deals and Chinese restrictions on outbound investment bit, law firm Baker & McKenzie said.
The figures reflected the impact of escalating trade and political friction between Washington and Beijing. After taking divestitures into account, net Chinese FDI flows into the United States actually turned negative.
Investment into the United States fell by 83 percent but, by contrast, grew by 80 percent into Canada. In Europe, despite an overall decline, Chinese FDI into countries like Germany, France and Spainalso actually grew.
Completed Chinese FDI deals in the two Western regions fell to $30 billion in 2018 from $111 billion the year before, Baker & McKenzie said in a report prepared with research firm Rhodium Group.