US firms are actively divesting from China – Fed note
Businesses have been shrinking Chinese holdings since 2020, research suggests
Direct investment from the US to China is declining and US firms are withdrawing what they hold in the country, according to new research from the Federal Reserve board.
In a note published on September 25, Cody Kallen, an economist in the board’s international finance division, examines five different sources of foreign investment data, include statistics from US companies’ subsidiaries in Hong Kong and the Cayman Islands. He says Chinese data has its own gaps, as the authorities there can miss
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