AEI Press , September 2004

     The Book examines the trends, characteristics, and implications of this investment using data from government and the private sector in the United States, China, and elsewhere; from international organizations such as the World Bank; and from the results of three surveys of foreign firms that have invested in China.

Looking Forward

The authors believe that U.S. direct investment in China will only continue to grow and prove profitable for both China and the United States. China needs, in particular, U.S. capital goods and technology, and the United States needs a reliable source of low-cost yet high-quality consumer goods.

China cannot produce what the United States exports, and the United States has already largely stopped producing what China exports. U.S. firms will continue to invest in China to implement a strategy for gaining business in goods, services, and technology in what is potentially the largest market in the world. Both countries provide ample opportunities for foreign direct investment to grow further.

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