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Why Chinese Investment In The U.S. Can Still Be A Good Thing

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Properly regulated foreign investment can bring jobs, tax revenues and know-how to the U.S., boosters say

Among other U.S. officials on hand at the China General Chamber event on Monday, Diane Farrell, Deputy Under Secretary for International Trade in the Commerce Department, also noted the pluses of mainland investment to the U.S. economy. “As our investment summit begins, I’m reminded of the contributions Chinese companies have made to growth and job creation in the U.S. economy,” Farrell said.

Investment by other foreign trading partners, Allen said, has helped reduce U.S. trade deficits and friction. “When you look at U.S. history — maybe the history of any country — you find that oftentimes there's a large trade deficit that deficit is corrected by internal foreign direct investment.”“In the 1970s, there was quite a bit of tension with Japan because of a bilateral trade deficit” that has been eased with the help of its investments in the U.S..

“The U.S. remains the world's largest consumer market, the most advanced financial system and a global highland for the creative minds,” she said.

 

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