Chinese FDI in the US: 2013 Recap and 2014 Outlook

Chinese investment in the United States doubled in 2013, driven by large-scale acquisitions in food, energy and real estate. Private firms are now dominating capital inflows, accounting for more than 80% of transactions and more than 70% of total transaction value. We expect Chinese interest in US assets to remain strong in 2014 because of aggressive economic reforms in China, a more liberal policy environment for Chinese outbound investors, and a positive outlook for the US economy. This note recaps the key trends of Chinese investment in the US in 2013 and outlines our view for 2014.

Thilo Hanemann and Cassie Gao