ABSTRACT

China's capital outflows literally soared for the half of 2016 and the United States is one of China's top destinations for its foreign direct investment (FDI). China's 2016 FDI also included capital-intensive green field projects in manufacturing and free-standing real estate. China had been a top recipient of FDI from the advanced economies. From an academic perspective, FDI should be beneficial for both the home country as well as the host country. More than 80 percent of all Chinese FDI transactions in the US in the half of 2016 can be characterized as strategic investments. However in the presidential election, both Hillary Clinton and Donald Trump were not restrained in terms of taking a tough stance on US-China trade relations, but with that said, neither candidate mentioned the huge spike in Chinese FDI entering the United States. China has aggressively accelerated its FDI into the developed countries due to China's development of its domestic economy.