Columbia International Affairs Online: Policy Briefs

CIAO DATE: 06/2012

Economic patriotism: Dealing with Chinese direct investment in the United States

Sophie Meunier

May 2012

Columbia Center on Sustainable Investment

Abstract

As Chinese FDI in the United States increases, a few investments are likely to attract negative attention. However, even though hosting Chinese FDI in the United States is not free from risk, the benefits outweigh the costs. As such, the United States should implement policy recommendations to welcome Chinese FDI, while dealing with its potential risks to limit a possible political backlash.