Investment between China and the US fell to their lowest level in almost a decade in the first half of 2020, as the COVID-19 pandemic is accelerating a process already underway between the two nations. According to a report from Rhodium Group and the National Committee on US-China Relations, capital flows between the two countries fell to $10.9 billion in the first six months of 2020.
A former Chinese commerce minister told CNBC last week that a complete decoupling of the two economies is almost impossible, but a partial separation is already underway, as the US government restricted Huawei's access to technology over security concerns, threatened to ban the social media platform TikTok over its gathering personal information on US citizens, and made it more difficult for Chinese tech firms to operate in the US. There has, however, been an increase in foreign direct investments in the Chinese market, suggesting opportunities for growth that non-US companies could use to their advantage.
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