NC State Economist Dr. Mike Walden – ”Foreign Investment in the U.S.”

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program looks at foreign investment in the U.S. Mike, slowly happening under the radar to many, direct foreign investment in the U.S. has been surging.  We’re talking about foreign investors building or buying factories or other businesses in our country.  Why is this happening, and what are the implications?

Mike:  Summary Answer

  1. Indeed, in just the last decade, annual direct investment by Chinese groups has more than doubled
  2. Why – the dollars China has acquired by running a large trade surplus with the US
  3. Dollars much be invested in some US asset – stock, bond, treasuries, factories, businesses
  4. China initially bought treasuries – now diversifying into businesses
  5. Implications – creates US jobs and income
  6. But do cede control to the investors
  7. I’m MW

Mary:  And I’m Mary Walden for the North Carolina Cooperative Extension Service