Cross-Border Investment Programs
Why Cross-Border Investment?
There are compelling incentives for the United States and China to increase direct investment in both directions. US direct investment in China was roughly $60 billion in 2010, yet a variety of obstacles and barriers to further American investment remain. Meanwhile, Chinese direct investment in the United States has hovered at around only $5 billion. For China, investing in the United States offers the opportunity to diversify risk from domestic markets while moving up the value-chain into higher-margin industries. And for the United States, leveraging Chinese capital could, in some sectors, help to create and sustain American jobs.
As a nonprofit institution, the Paulson Institute does not participate in any investments. But by taking a sector-by-sector look at opportunities and constraints, the Institute has begun to highlight commercially promising opportunities—and to convene relevant players from industry, the capital markets, government, and academia around economically rational and politically realistic investment ideas.
The Institute’s goal is to focus on specific and promising sectors rather than treat the question of investment abstractly. We currently have two such sectoral efforts—on agribusiness and manufacturing.
The Institute publishes in-depth historical case studies of past Chinese direct investments in the United States, examining investment structures and economic, political, and business rationales. These detailed studies aim to reconstruct motivations and actions, and then to draw lessons learned.