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92% Drop in China Investments Amid Trade Strains

Shobhit Seth

The tiffs around the trade war between America and China are now getting big, and the impact is visible in declining investment numbers in the U.S. A report prepared by consulting and research firm Rhodium Group finds that Chinese acquisitions and investments in the U.S. declined by 92% to just $1.8 billion during the first five months of this year, according to CNBC. During the same period, the net Chinese deal flow to the U.S. stood at negative $7.8 billion, if divestitures are included. Divestiture is the opposite of investment and is defined as the disposal of a business unit through sale, exchange, closure or bankruptcy.