In the first half of 2020, investment between the United States and China tumbled to a nine-year low, hit by bilateral tensions that could see more Chinese companies come under pressure to pest U.S. operations, Reuters reported.
Investment between the two countries fell 16.2% to $10.9 billion in January-June from the same period a year earlier, whether the direct investment by companies or venture capital flows, and it also got affected by the coronavirus pandemic, according to figures from consultancy Rhodium Group.
That’s a far from half-yearly totals of nearly $40 billion seen in 2016 and 2017.
President Donald Trump’s administration expanded actions in order to hinder Chinese companies, putting national security risks posed by Chinese technology firms in concerns.
The action process incorporated putting telecoms giant Huawei Technologies Co Ltd on its trade blacklist, threatening similar action for Semiconductor Manufacturing International Corp and ordering TikTok owner ByteDance to pest the short-form video app.
At the time being, ByteDance is hoping to gain consent for a deal with Oracle Corp that is formed as a partnership rather than an outright sale.
“At a time of severe discomfort with US-China technology integration numerous other companies - both Chinese companies working in the U.S. and U.S. companies with a presence of the Chinese may be are under pressure to pest,” according to the report.
“U.S. handling ByteDance and the significant shift away from U.S.-China technology integration may lead to policies which make it unattainable for U.S. tech companies to operate in China,” it added.
“Investment by U.S. companies in China within the first half tumbled 31% to $4.1 billion, on the other hand, investment by Chinese companies in the United States rose 38% to $4.7 billion,” the report mentioned. “That was most likely because of one deal - a Tencent Music -led consortium’s purchase of a minority stake in Universal Music group for $3.4 billion.”
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