While U.S. news media have recently focused on Trump’s health care and tax policies, Chinese think tanks and business leaders are concerned on potential investment opportunities the administration may create.
Trump “wants to have good relations with China. And so I would think that would certainly have something to do with how China can participate,” real estate mogul Richard LeFrak said in response to a CNBC question.
He wouldn’t put a specific number on how much China might contribute to infrastructure projects.
Chinese companies tripled their investment in the U.S. last year to $46 billion, according to consulting firm the Rhodium Group.
So far this year, investment from China has slowed due to Beijing’s efforts to limit capital outflows. Some in the U.S. federal government have also discussed increasing scrutiny on Chinese deals for security reasons, and the idea of cooperation with China may not fly in some voting districts.
But many analysts expect Chinese authorities to loosen capital controls and remain confident that Chinese money will continue to flow into the United States
“In the end it doesn’t matter who opens a new factor in Kentucky, South Carolina, Idaho or wherever. Someone is investing in their community,” said Adams Lee, an international trade lawyer at Harris Bricken. Despite a recent lull, “I think there’s going to be more Chinese investment in the U.S. across all sectors.”
The U.S. Congressional district that includes Louisville, Kentucky, was among the top 5 recipients of Chinese foreign direct investment from 2000 to 2016, according to an April report from Rhodium and the National Committee on U.S.-China Relations. One of New York City’s districts heads the list, followed by one in Chicago.
