US Firms Scale Back Chinese Investments As Growth Slows

U.S. companies, which have led Western investment in China over the last 35 years, are scaling back their expectations and business plans in the face of slowing growth, heightened competition and increased regulatory scrutiny from Beijing.

“Clearly, there’s moderating optimism,” said John Frisbie, president of the U.S.-China Business Council (USCBC). “There’s also a lot of policy uncertainty in the business community.”

The USCBC estimates U.S. business in China is worth about $350 billion a year, a figure that includes exports, as well as domestic and offshore sales by U.S. affiliates located in China.

That market may be growing at about 10 percent a year, but with China’s top-line gross domestic product growth expected to slow to 7.4 percent this year, the message from executives speaking on the sidelines of an APEC regional summit in Beijing was that many big investors are holding fire on fresh commitments.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza