Securities investments between US and China reach US$3.3 trillion in 2020, says report

Securities investments between US and China reach US$3.3 trillion in 2020, says report

American and Chinese investment in each other’s corporate securities reached US$3.3 trillion in 2020, despite political headwinds on both sides, according to Rhodium Group.

Given the size of the two countries’ economies, “there would be room for trillions of dollars in additional US-China financial investment” to triple to more than US$9 trillion, said the report released on Tuesday by the New York-based consultancy and the National Committee on US-China Relations.

But policy challenges can hinder future growth.

“Measures have proliferated on both sides which, if current trends persist, could greatly diminish growth prospects,” said the authors, led by Adam Lysenko in the report.