Chinese investment in the US will grow in 2016

The enthusiasm of Chinese government and businesses for foreign investment is higher than ever despite of the slowing domestic growth in China. These Chinese investors view it a good way to develop brands and build competance at the world stage. However, the $90 billion capital inflow to the US is less than 10% of the $1.1 trillion total outbound foreign investment from China since 2005. This is partly due to the political concerns of the US government as three quarters of Chinese foreign investment has been in energy, natural resources and transportation infrastructures, while the natural resources tend to be screened out by US Federal Committee for foreign SOEs investments for national security purpose. But this will change now. China starts to focus more on entertainment, real estate, insurance and technology industries which have higher rate of returns, and those markets are dominated by the US. Forbes has the full story here.