- China's investment in U.S. rose 35.9% this year through August
- Minister: Fed to have `limited impact' on outbound investment
Chinese investment into the U.S. will grow strongly regardless of the Federal Reserve’s decision on interest rates, a senior Chinese trade official said.
The comments came as the Fed meets to decide whether to raise rates for the first time in nine years and ahead of Chinese President Xi Jinping’s state visit to the U.S. next week.
"As for the impact from a Fed rate hike on China’s economy, we are assessing it, and the initial conclusion is that it will have limited impact on China’s outbound investment, especially China’s direct investment in the U.S.," said Zhang Xiangchen, China’s deputy international trade representative, at a briefing in Beijing Thursday. "Chinese companies are still enthusiastic about investing in the U.S."
China’s investment in the U.S. rose 35.9 percent in the first eight months of this year, Zhang said. According to a report released by Zhang’s ministry, the statistics agency and the foreign exchange administration, the U.S. is the fourth-largest destination for Chinese investment measured by the stock of investments at the end of 2014, behind only Hong Kong and the tax havens of the British Virgin Islands and Cayman Islands.
As China’s investments rise, it wants more access to the U.S.
"In the negotiation process, we will urge the U.S. side to be more transparent about the review and simplify procedures to reduce unnecessary burdens and obstacles for Chinese companies investing in the U.S.," Zhang said, referring to U.S. security reviews over Chinese investment deals.
In 2011, Chinese telecommunications equipment maker Huawei Technologies Co. called off its attempt to acquire U.S. server technology firm 3Leaf Systems Inc. under pressure from the Committee on Foreign Investment in the United States, the Treasury Department body that reviews foreign acquisitions of U.S. companies to ensure they do not pose a threat to national security.
— With assistance by Xin Zhou