File photo taken on Nov. 23, 2016 shows the national flags of the United States and China during the 27th Session of the China-U.S. Joint Commission on Commerce and Trade (JCCT) in Washington D.C., capital of the United States. (Xinhua/Yin Bogu)
by Xinhua writers Liming, Qi Zijian, Zhou Xiaozheng
NEW YORK, May 19 (Xinhua) -- Foreign Direct Investment (FDI) between China and United States reached an all-time high of 60 billion U.S. dollars in 2016, according to a recent report, which said the figure has elevated the importance of two-way FDI in the two countries' economic relationship.
The report, "Two-Way Street: 2017 Update," which was jointly released by the Rhodium Group and the National Committee on U.S.-China Relations on Wednesday, also showed the cumulative value of U.S. FDI in China since 1990 has exceeded 240 billion dollars, while Chinese companies have invested a total of 110 billion dollars in the United States during the same period.
In the past few years, China-U.S. FDI has become an increasingly important channel of bilateral interactions, with both countries benefitting greatly from the huge amount of capital flows between them.
On the one hand, U.S. investment has been flourishing in China since 1990 thanks to the latter's reform and opening up. Attracted by China' s robust economic growth and booming consumer market, U.S. multinationals have been expanding and deepening their footprints in the country during the past two decades.
For American Fortune 500 corporations like Procter & Gamble, Chinese market has been a true wonderland ever since the company's businesses entered China in the late 1980s. For years, China has been the consumer goods tycoon's second largest contributor of global sales after the United States.
As China is undergoing profound economic reforms, U.S. capital in China is also shifting from traditional sectors like the food and auto industries to advanced manufacturing and modern services.
From Apple's R&D center in Beijing to Walt Disney's theme park in Shanghai, recent deals have demonstrated American investors' profound confidence in the sustainable growth of Chinese economy under a more innovation-driven and consumption-oriented model.
On the other hand, Chinese investment in the United States have expanded at a record pace. In 2016, Chinese companies invested 46 billion dollars in the United States, tripling the amount seen in 2015 and a tenfold increase compared to just five years ago, said the report.
In search for advanced technology and overseas market, Chinese capital had reached all 50 U.S. states as of 2016, covering a broad spectrum of industries from information and communications technology to real estate, entertainment and financial services.
China investment has helped boost economic growth and employment in the United States, which is in line with the policy goals of U.S. President Donald Trump's administration.
Meanwhile, another report by the Rhodium Group showed employment by Chinese-owned firms in the United States had jumped ninefold since 2009 to 140,000 jobs last year, echoing Trump's campaign promise to put more Americans back to work.
Amid a sluggish global economy and a growing anti-globalization trend, the economic and trade relationship between Beijing and Washington is more important than ever. Leaders from both sides have taken efforts to ensure the stability and prosperity of bilateral ties in this facet.
During their meeting last month, Chinese President Xi Jinping and U.S. President Donald Trump agreed to facilitate the healthy development of two-way trade and investment, setting a positive tone for resuming negotiations on a bilateral investment treaty.
From Chinese consumers to American blue-collar workers, the two-way FDI has brought great benefits to people in both countries. There is no doubt that it will continue to inject vigor to both economies.
