Irony Overload: Is the US is about to be Neocolonialised by China?

[dmallind]

5. Would be a long run

If they invested every dime of that $3.2T in the US they would still be several hundred billion behind the US in direct foreign investment abroad.

Incidentally for all the bemoaning of US companies offshoring, we are also by far the world leader already in foreign companies investing here with $2.9T worth of direct foreign investment at home. Yep - many times more than China's 700-odd billion, which doesn't even rank in the top 5.

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2198rank.html?countryName=China&countryCode=ch®ionCode=eas&rank=7#ch

And no that doesn't include foreign ownership of US debt - it's real investment in output. Foreign direct investment, in its classic definition, is defined as a company from one country making a physical investment into building a factory in another country. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. In recent years, given rapid growth and change in global investment patterns, the definition has been broadened to include the acquisition of a lasting management interest in a company or enterprise outside the investing firm’s home country. As such, it may take many forms, such as a direct acquisition of a foreign firm, construction of a facility, or investment in a joint venture or strategic alliance with a local firm with attendant input of technology.