Decoupling between the US and Chinese economies shifted into overdrive in the first quarter of this year, as the commercial impact of coronavirus exacerbated what some analysts are calling a “cold war” chill in ties between the countries.
The value of newly announced Chinese direct investment projects into the US fell to just $200m in the first quarter of this year, down from an average of $2bn per quarter in 2019, according to a report by research firm Rhodium Group and the National Committee on United States-China Relations, a non-governmental organisation.
The fall comes after Chinese direct investment in the US dropped to the lowest level since 2009 last year — down from $2.7bn a quarter in 2018 and $8bn a quarter in the boom years of 2016 and 2017 — amid souring bilateral ties.