by Deepthi Sathyanarayana
Since 2018, the United States and China have been in near constant tense dialogue over trade relations. While both countries took a brief hiatus in 2017 to come to an agreement, it was short-lived and both countries took turns imposing tariffs on imports. While this has significantly affected trade patterns between the two countries, the impact of foreign direct investment (FDI) outflows from both the U.S. and China has yet to be comprehensively examined. This paper finds that American FDI has remained the same but China's FDI in the U.S. has reduced over the period from 2018 to 2022.