Cash in Hand

In this study, we offer a comparative analysis of Chinese FDI growth in two developed country destinations: Germany and the United States. An analysis of the data establishes a sharp upward trend in FDI into both of these countries. The current trajectory indicates that Chinese FDI into developed countries like the U.S. and Germany will have a profound impact on the global economy in the future.
As it stands, however, current levels of Chinese FDI into these countries have been quite small: China still holds less than 0.2 percent of the FDI stocks in both Germany and the U.S. This fact does not match up to the status of the three countries’ leading roles in the global economy. The report therefore raises key questions about the regulatory climate for Chinese FDI both within China – which has seen substantial liberalization as part of the government’s “going-out” strategy – and within Germany and the U.S.