U.S.-Sino ties plunged during the Trump administration, but the downfall has only intensified since Biden’s presidency. Without concrete policy shifts, the tensions, fueled by defense contractors, translate to arms races and elevated nuclear risks in Asia.

Chinese foreign direct investment in the US has seen a profound decline over the past few years, but President Trump’s unorthodox methods do not account for the entirety of the issue.

Chinese FDI transactions dropped by over a third in 2017 as Beijing imposed restrictions over outbound investment and Washington toughened screening of high-tech acquisitions.

Chinese companies are facing barriers as the U.S. continues to restrict the market entry of foreign companies considered a national security risk.

Nigerian and international reporting on Chinese investment in Nigeria gives the impression that Chinese companies are the largest investors in the country. However, this is not the case.

National security concerns in the U.S. and China have been used to bar certain types of foreign investments. Subjecting a legitimate commercial deal to arbitrary and protectionist exercises may only invite a similar action by the affected state, thus creating a potential spiral adverse to foreign investments.

The China wave will continue to roll across the globe crashing on far away shores as the 21st century unfolds. Individuals, states, and nations can do nothing and be swamped or learn to surf and ride the wave.

“China-bashing” rhetoric has for years dominated U.S. national elections cycles, however, can a rapidly increasing and geographically diverse Chinese foreign direct investment in the United States temper this typical national anti-China dialogue?

The withdrawal of a few enterprises from China does not necessarily mean that China’s ability to attract foreign investment is declining. Rising labor costs, land costs, and a shrinking manufacturing sector are several structural indications of a changing economy. China will investigate and respond to foreign business concerns regarding the investment climate and safeguard the legitimate rights and interests of investors and enterprises.

China’s selectiveness of foreign investment reflects its restructuring economy, one that invests less in capital and labor intensive industries to investments in human resources and technological innovation. Some far-sighted multinational companies are actively making use of the new rules, seizing the opportunity of China’s structural transformation and beginning to make active arrangements in the strategic newly emerging industries and the high-end service industry.