China set a record with its investments around the world in 2012. And in the United States, China shattered its previous investment record.
Before people start panicking, it’s important to know: This is not a bad thing.
First, let’s put it in perspective. Chinese investment is still very, very small as compared to the size of the U.S. economy. At the national level, the stock of investment is barely $50 billion—which sounds large, but is negligible compared to a stock of American wealth of more than $60 trillion.
No one’s “taking over” anything. In fact, more Chinese investment is a good thing. It creates jobs; it benefits companies, and it should be welcomed. It also gives us more leverage to push for a more open Chinese market, which continues to be a major problem.
Globally, the U.S. can compete and win with China in terms of economic influence, but we have to be willing to play. We have to be willing to expand our trade and investment in both directions.
The rest of Heritage's research on China's investment in US is HERE. Do you agree with their assessment?