Question

If the Trump Administration does impose even more restrictions on Chinese imports as they claim they will, would the amount of DFI by China change at all and if so how?

Answer 1

If trump administration imposes restrictions on chinese imports , the chinese companies who export their products to US will become uncompetitive in the US market . The main objective of Trump gove imposing the tariffs is for : Intellectual property theft and huge trade deficit with China.

This move will make chinese exports uncompetive and will be a benefit for American local manufacturers. This might boost local manufacturing and create more jobs in the US market. These tariffs will act as barriers for chinese manufacturers to import their products . These barriers will also impact FDI by chinese companies in the long run as they will find it difficult to compete with local manufacturers. Thus , the DFI (Direct Foreign Investment) by China in US will come down.