Testimony Before U.S.-China Economic and Security Review Commission on Chinese Foreign Direct Investment

January 30, 2017

On a deal-by-deal basis, some foreign direct investment from China is a net positive for the U.S. economy. But at least one-third comes from Chinese state-owned enterprises, and it is likely that considerably more is guided and supported by the Chinese government as part of an “indigenous innovation” strategy that employs mercantilist policies and specifically targets sectors that are strategically important for U.S. national security or economic leadership.