Cody KallenFor decades, China was a major destination for foreign direct investment (FDI) by U.S. companies. In the last decade, however, trade tensions, geopolitical risks, and investment screening have interrupted these FDI flows and led firms to shift production toward third countries (Reyes-Heroles et al., 2020).
FEDS Note: Decoupling Direct Investment: American Firms’ Retreat from China
Cody KallenFor decades, China was a major destination for foreign direct investment (FDI) by U.S. companies. In the last decade, however, trade tensions, geopolitical risks, and investment screening have interrupted these FDI flows and led firms to shift production toward third countries (Reyes-Heroles et al.,…