Chinese investment in the US plummeted 88% since Trump took office

The fact that the foreign direct investment has fallen so sharply is symbolic of how badly the economic relationship between US and China has deteriorated Growing distrust between the United States and China has slowed the once steady flow of Chinese cash into America, with Chinese investment plummeting by nearly 90% since President Donald Trump took office.

The falloff, which is being felt broadly across the economy, stems from tougher regulatory scrutiny in the United States and a less hospitable climate towards Chinese investment, as well as Beijing’s tightened limits on foreign spending.

It is affecting a range of industries, including Silicon Valley startups, the Manhattan real estate market and state governments that spent years wooing Chinese investment, underscoring howthe world’s two largest economies are beginning to decouple after years of increasing integration.

The fact that the foreign direct investment has fallen so sharply is symbolic of how badly the economic relationship between the United States and China has deteriorated, said Eswar Prasad, former head of the International Monetary Fund’s China division.

The US doesn’t trust the Chinese, and China doesn’t trust the US.

For years, Chinese investment into the United States had been accelerating, with money pouring into autos, tech, energy and agriculture and fuelling new jobs in Michigan, South Carolina, Missouri, Texas and other states.

As China’s economy boomed, state and local governments along with US companies looked to snap up some of those Chinese funds.

But Trump’s economic Cold War has helped reverse that trend.

Chinese foreign direct investment in