U.S. direct investments in China 2000-2021 | Statista (2024)

This statistic shows the direct investment position of the United States in China from 2000 to 2021, on a historical-cost basis. In 2021, the U.S. investments made in China were valued at 118.19 billion U.S. dollars.

Direct investment position of the United States - additional information

Foreign direct investment (FDI), simply put, is an investment of one company into another company located in a different country. It differs from a traditional way of investing into shares of foreign companies listed on a stock exchange. The companies which make foreign direct investment usually own a part of the company in which they invest and they have influence on the decision making process. In the United States, FDI is defined as an American investor (called the U.S. parent) owning a minimum of 10 percent of a foreign firm (known as a foreign affiliate). The total direct position of the United States abroad amounted to 6.49 trillion U.S. dollars in 2020.

Although the phenomenon profits greatly from the technological advances of the 21st century, as well as from the cultural flexibility of today’s workforce, FDI has a long history, going back to the colonial empires. Not without critics, FDI is generally believed to bring advantages to the investing company, such as access to new markets and decreased costs of labor, materials and production facilities. The local economy can benefit from an infusion of capital, access to new technologies and engagement of native labor pool. There are three recognized types of foreign direct investment, namely horizontal FDI, platform FDI and vertical FDI, along with various methods of implementing the investment itself. FDI considered by many one of the motors of worldwide economic growth.

U.S. foreign investment abroad has seen a dramatic growth in the past decades. Multinational American corporations, especially focused on manufacturing, have largely invested in facilities overseas, due to financial benefits. However, a large share of these corporations focuses toward not only supplying the U.S. market, but also the local markets in which they operate. In 2020, the country that received the largest amount of U.S. foreign investment was the United Kingdom, with a little over one trillion U.S. dollars, followed by the Netherlands, and Luxembourg. Overall, the total amount of U.S. dollars invested in European states in 2021 reached 3.98 trillion U.S. dollars compared to 2.25 trillion U.S. dollars a decade prior.

U.S. direct investments in China 2000-2021 | Statista (2024)

FAQs

U.S. direct investments in China 2000-2021 | Statista? ›

Direct investment position of the U.S. in China 2000-2021. This statistic shows the direct investment position of the United States in China from 2000 to 2021, on a historical-cost basis. In 2021, the U.S. investments made in China were valued at 118.19 billion U.S. dollars.

How much money did US invest in China? ›

U.S. companies spent about $11 billion in 2022 buying or investing in Chinese companies, according to the data service firm Dealogic.

What is the foreign direct investment in China over time? ›

Foreign Direct Investment in China averaged 494.42 USD HML from 1997 until 2023, reaching an all time high of 1891.30 USD HML in December of 2022 and a record low of 18.32 USD HML in January of 2000.

Does US have investments in China? ›

American firms have subsidiaries and joint ventures all over the world, including in China, and many US investment funds are registered in offshore financial centers, with funds raised from investors all over the world, even if they are run through New York.

How much FDI did China receive? ›

In recent years, China has been the second largest recipient of foreign direct investments (FDI) worldwide, attracting approximately 181 billion U.S. dollars in 2021.

How much money is US owing China? ›

Top Foreign Holders of U.S. Debt
RankCountryU.S. Treasury Holdings
1🇯🇵 Japan$1,076B
2🇨🇳 China$867B
3🇬🇧 United Kingdom$655B
4🇧🇪 Belgium$354B
6 more rows
Mar 24, 2023

Why does the US owe so much money to China? ›

U.S. debt to China comes in the form of U.S. Treasuries, largely due to their safety and stability. Although there are worries about China selling off U.S. debt, which would hamper economic growth, doing so in large amounts poses risks for China as well, making it unlikely to happen.

Which country has invested the most in China? ›

The United States is the top destination in the world for Chinese FDI, drawing in $183.2 billion, or 15 percent of China's total outflows, between 2005 and 2019.

How much foreign direct investment in China has been increasing since the 1980s? ›

China's foreign direct investment (FDI) and outward FDI policies have evolved alongside economic development over the last 40 years. China's actual use of FDI has increased 60 folds since 1983, to 136.3 billion U.S. dollars in 2017, according to the Ministry of Commerce (MOFCOM).

Which country has the largest direct foreign investment in the United States? ›

In 2021, no country had a higher foreign direct investment (FDI) position in the United States than Japan, followed by the Netherlands and Canada. At that time, Japan had over 690 billion U.S. dollars invested in the United States.

How many US assets does China own? ›

China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture.

What US banks are invested in China? ›

Among the 41 locally incorporated foreign banks in China, there are eight from the U.S. that operate about 80 branches and representative offices in China.
  • Citibank.
  • Bank of America Merrill Lynch.
  • BNY Mellon.
  • East West Bank.
  • JPMorgan Chase Bank.
  • Morgan Stanley Bank International.
  • SPD Silicon Valley Bank.

Does China fund US debt? ›

In fact, Treasuries are a logical investment for a country with high foreign currency reserves. China currently holds almost 11.60% of U.S. foreign debt.

Who are the 5 largest investors of FDI in China? ›

China's main investors have remained broadly stable. Inflows from the US and Europe have dropped, but regional investment has continued to increase as flows from ASEAN countries grow. Singapore, the Virgin Islands, South Korea, the Cayman Islands, Japan, Germany and the United States count among major investors.

Did China surpass US in FDI? ›

China surpasses U.S. as largest recipient of foreign direct investment during Covid pandemic. China brought in $163 billion in inflows last year, compared to $134 billion attracted by the U.S., the United Nations Conference on Trade and Development wrote in a report released on Sunday.

Why is China's FDI so high? ›

Local Chinese Market and Business Climate

The sheer size of China's population makes it an attractive nation for investors to commit capital to higher-end industries like healthcare, information technology, engineering, and luxury goods.

Who owes the US the most money? ›

Which countries hold the most US debt? Over the past 20 years, Japan and China have owned more US Treasuries than any other foreign nation.

Who are the largest holders of U.S. debt? ›

Domestic Holders of Federal Debt

The Federal Reserve, which purchases and sells Treasury securities as a means to influence federal interest rates and the nation's money supply, is the largest holder of such debt.

Which country holds the most U.S. debt? ›

According to usafacts.org, as of January 2023, Japan owned $1.1 trillion in US Treasuries, making it the largest foreign holder of the national debt. The second-largest holder is China, which owned $859 billion of US debt.

How much does Russia owe the US? ›

How much does Russia owe? About $40 billion US in foreign bonds, about half of that to foreigners. Before the start of the war, Russia had around $640 billion US in foreign currency and gold reserves, much of which was held overseas and is now frozen.

When did the United States start borrowing money from China? ›

Even so, in April 1938, the Nationalist government of China began to issue U.S.-dollar denominated bonds to finance the war against Japan's brutal invasion. Locked in a pitched battle for survival, the government issued these bonds into 1940.

Which country owes the most money to China? ›

At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China.

Are Hilton hotels owned by China? ›

On December 12, 2013, Hilton again became a public company, raising an estimated $2.35 billion in its second IPO. At the time, The Blackstone Group held a 45.8 percent stake in the company. In October 2016, China's HNA Group agreed to acquire a 25 percent equity interest in Hilton from Blackstone.

Does China have more wealth than the US? ›

TOKYO/BEIJING -- China's net worth reached $120 trillion in 2020 to overtake the U.S.'s $89 trillion as a red-hot real estate market drove up property value, according to a report by McKinsey Global Institute.

Who is China's largest foreign investor? ›

Singapore and China are celebrating the 30th anniversary of the establishment of our diplomatic relations in 2020. Since 2013, China has been Singapore's largest trading partner, and Singapore has been China's largest foreign investor.

When did China surpass the US as the world's largest trading nation? ›

China became the world's largest trading nation in 2013, overtaking the US in what Beijing described as "a landmark milestone" for the country.

Why is China doing better economically now than 50 years ago? ›

China's trade and investment reforms and incentives led to a surge in FDI beginning in the early 1990s. Such flows have been a major source of China's productivity gains and rapid economic and trade growth.

Why is China's economy growing so fast? ›

Driven by industrial production and manufacturing exports, China's GDP is actually now the largest in terms of purchasing power parity (PPP) equivalence. Despite this growth, China's economy remains strictly controlled by its government where there are accusations of corruption, unfair dealings, and falsified data.

What percentage of the US stock market is owned by foreigners? ›

Our new analysis shows that foreign investors owned about 40 percent of US corporate equity in 2019, up substantially over the last few decades.

How much of the United States is owned by foreign investors? ›

Of the 1.3 billion acres of private agricultural land in the United States, foreign entities fully or partially owned roughly 40 million acres valued at $74 billion in 2021.

Is the US the largest host economy for foreign direct investment? ›

The United States recorded the largest increase of inward foreign direct investment of all economies in 2021. The latest release of the IMF's Coordinated Direct Investment Survey shows the US position increasing by $506 billion, or 11.3 percent, last year.

What percentage of Bank of America does China own? ›

Is Bank of America Partly Owned by China? No, Bank of America is not partly owned by China. It is an American bank. The bank did have a partnership with China Construction Bank and owned a stake in the Chinese entity, which it has since sold and no longer owns.

What percentage of the US economy is owned by China? ›

China purchased $165 billion in goods and services from the United States in 2015, representing 7.3 percent of all US exports and about 1 percent of total US economic output.

Does China have more debt than the US? ›

Therefore, China's national debt has surged almost three times that of the United States in the past 12 months. In the third spot, Japan has a national debt of $13.36 trillion, indicating a drop of $1.49 trillion YoY.

Does China own $1 trillion US debt? ›

China and Japan are the largest foreign investors in American government debt. Together they own $2 trillion — more than a quarter — of the $7.6 trillion in US Treasury securities held by foreign countries.

Which country has invested most in China? ›

The United States is the top destination in the world for Chinese FDI, drawing in $183.2 billion, or 15 percent of China's total outflows, between 2005 and 2019.

Did China beat US to become richest country? ›

China emerged at the top of the worldwide list, accounting for almost one-third of the increase. China's wealth jumped to $120 trillion in 2020 from just $7 trillion in 2000. This marks a jump of $113 trillion in 20 years, helping the nation surpass the United States in terms of net worth.

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