Maximizing the Benefits of Chinese Foreign Direct Investment

Daniel H. Rosen and Thilo Hanemann



Over the past decade, China’s unprecedented surge of economic dynamism and development has radically altered the global landscape and affected a host of international relationships. One of the most significant trends that will influence how the United States and China—indeed, China and the world—interact in the future has only recently begun to emerge. China is now taking a lead role in seeking to invest in ventures around the world, including the United States, through mergers, acquisitions, and greenfield investments. As a result, the United States is finding itself increasingly on the receiving end of foreign direct investment from China. The purpose of this study is to provide American officials and the public at large with an informed basis for assessing the challenge posed by this new reality. The authors believe that the United States can, without decreasing its vigilance on national security matters, embrace Chinese investments in ways that will stimulate innovation, job creation and infrastructure renewal, while at the same time laying the foundation for a more cooperative relationship with China.