News / Business

China investments in US to double

Thursday, 14 April 2016 5:53 PM [ Last Update: Thursday, 14 April 2016 5:52 PM ]

A new study shows that investments by Chinese companies could double in the US by the end of 2016.

Analysts say they expect Chinese companies to double their investments in the US in 2016 to as high as about $30 billion.

A report by researchers from Rhodium Group as well as the National Committee on US-China Relations showed that investments by China in the US for 2015 stood at $15 billion. However, this could see a major rise as more Chinese companies are expected to bring in their capital to the US.

By the end of 2015 more than 1,900 Chinese-affiliated companies were operating in the US across more than 80 percent of its congressional districts and employing some 90,000 people, said the report.

The study showed that only an eighth of China’s $120 billion in outward investment last year went to the US.

Nevertheless, the amount invested in American businesses is growing rapidly as Beijing wants to shift the economy toward technology, services and greater consumer spending.

More than $5 billion in US deals have been completed in the first three months of this year alone, reported Russia Today on its website.

The study found that last year New York saw the most Chinese investment at $4.1 billion topping California's $1.8 billion. New York has benefited from deals related to tourism and financial services.

Over the past 15 years, Chinese firms invested $70 million in Californian food and agriculture companies while total investment in the sector across the US reached $7.4 billion, RT added.

The report further added that California will be a top destination in coming years for a variety of Chinese investment in the US, which could reach $200 billion by 2020.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk