Chinese investment in the United States has plummeted 92% this year

[Spartan]

Chinese investment in the United States nosedived in the first five months of 2018 amid mounting tensions between the world's two largest economies.

For years, Chinese companies pumped growing amounts of money into the United States, deepening ties between the countries. 

But Chinese investment totaled only $1.8 billion between January and May. That's a 92% drop compared to the same period in 2017, and the lowest level in seven years, according to a report released Wednesday by Rhodium Group, a research firm that tracks Chinese foreign investment. 

The dramatic decline comes as the fight between Washington and Beijing over trade escalates, and US regulators increase their scrutiny of Chinese acquisitions. 

"The more confrontational approach of the Trump administration toward economic relations with China has cast some doubt, in these companies' minds, about their position here," said Thilo Hanemann, a director at Rhodium Group and one of the report's authors. 

President Donald Trump has made cracking down on what he calls China's "unfair" trade practices a top priority this year. He's vowed to put tariffs on Chinese products worth at least $50 billion, and indicated he could impose tariffs on goods worth hundreds of billions of dollars more if China does not bow to US demands. China claims the United States has launched a trade war and said it plans to strike back. 

China has already retaliated against US tariffs on steel and aluminum, which went into effect earlier this year. 

In the meantime, the regulatory environment for Chinese investment in the United States has become much tougher. 

Related: Under Trump, the US government gives many foreign deals a closer look

The Committee on Foreign Investment in the United States, or CFIUS, is an inter-agency panel chaired by the Treasury Department. It vets certain deals that could give a foreign investor control of a US business for national security risks. 

That panel has been more aggressive under Trump. Experts say CFIUS has examined a greater number of deals, while heavily scrutinizing tie-ups that could give foreign companies access to sensitive technologies or personal data on Americans. 

A number of major deals involving Chinese investors were called off in the first half of 2018 by companies who cited problems with CFIUS. This includes Alibaba (BABA) affiliate Ant Financial's $1.2 billion attempt to takeover Moneygram (MGI), and conglomerate HNA Group's bid for Skybridge Capital, a hedge fund. 

[tacobell fan]

due to Chinese gov restriction to not to allow fund transfer beyond 250k ani. It has nothing to do with trade wars. India lo kuda RBI introduced similar one where they won't allow foreign investments not more than 250k 

[Spartan]

Just now, tacobell fan said:

due to Chinese gov restriction to not to allow fund transfer beyond 250k ani 

but vallaki incoming o range lo pergindi... 

 atleast housing market koncham set aitademo..bay area..lekapote kodkulu 1M$ cash ichi konukuntunnaru single day lo.

recent ga ma area lo 900K ki pettina illu..next day 950 cash pay chesi..close out chesaru...almost 3-5 cases in 2 months.

[tacobell fan]

Just now, Spartan said:

but vallaki incoming o range lo pergindi... 

 atleast housing market koncham set aitademo..bay area..lekapote kodkulu 1M$ cash ichi konukuntunnaru single day lo.

recent ga ma area lo 900K ki pettina illu..next day 950 cash pay chesi..close out chesaru...almost 3-5 cases in 2 months.

nenu kuda vinna this story but long time settlers with businesses and rich will continue to show same behavior but may not be in en-mass anymore