China’s investment into North America dropped at the end of last year below levels seen during the worst of the pandemic, a slump caused by hurdles in the US and likely exacerbated by a wait-and-see attitude of firms ahead of the election won by Donald Trump.

Companies only announced $191 million of new investments into Canada, Mexico and the US last quarter, according to new research from US-based consultancy Rhodium Group, a decline of more than 90% from the same period a year earlier.

That was a fraction of the $16.5 billion in outbound investment announced during the final three months of 2024, with the Middle East and Africa the largest destinations for Chinese firms.

The US has become a more hostile place for Chinese companies turned off by tariffs limiting or blocking their exports and growing restrictions on investments into the world’s largest economy.

Case in point: the ban on Chinese electric vehicle technology has led to a capital-light approach to auto-related investment, with battery giant Contemporary Amperex Technology Co Ltd. only licensing its technology to Ford Motor Co. for a factory in Michigan.

Source: FINANCE.YAHOO