Decoupling between the US and Chinese economies shifted into overdrive in the first quarter of this year, as the commercial impact of the coronavirus pandemic exacerbated what some analysts are calling a “cold war” chill in ties between the two 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.