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This statistic shows the direct investment position of the United States in China from 2000 to 2023, on a historical-cost basis. In 2023, the U.S. investments made in China were valued at 126.91 billion U.S. dollars.

Direct investment position of the United States - additional information

Foreign direct investment (FDI), simply put, is an investment of one company into another company located in a different country. It differs from a traditional way of investing into shares of foreign companies listed on a stock exchange. The companies which make foreign direct investment usually own a part of the company in which they invest and they have influence on the decision making process. In the United States, FDI is defined as an American investor (called the U.S. parent) owning a minimum of 10 percent of a foreign firm (known as a foreign affiliate). The total direct position of the United States abroad amounted to 6.68 trillion U.S. dollars in 2023.

Although the phenomenon profits greatly from the technological advances of the 21st century, as well as from the cultural flexibility of today’s workforce, FDI has a long history, going back to the colonial empires. Not without critics, FDI is generally believed to bring advantages to the investing company, such as access to new markets and decreased costs of labor, materials and production facilities. The local economy can benefit from an infusion of capital, access to new technologies and engagement of native labor pool. There are three recognized types of foreign direct investment, namely horizontal FDI, platform FDI and vertical FDI, along with various methods of implementing the investment itself. FDI considered by many one of the motors of worldwide economic growth.

U.S. foreign investment abroad has seen a dramatic growth in the past decades. Multinational American corporations, especially focused on manufacturing, have largely invested in facilities overseas, due to financial benefits. However, a large share of these corporations focuses toward not only supplying the U.S. market, but also the local markets in which they operate. In 2020, the country that received the largest amount of U.S. foreign investment was the United Kingdom, with a little over one trillion U.S. dollars, followed by the Netherlands, and Luxembourg. Overall, the total amount of U.S. dollars invested in European states in 2021 reached 3.98 trillion U.S. dollars compared to 2.25 trillion U.S. dollars a decade prior.

Foreign direct investment position of the United States in China from 2000 to 2023 (in billion U.S. dollars, on a historical-cost basis)

Characteristic	Direct investments in billion U.S. dollars
2023	126.91
2022	122.21
2021	116
2020	116.51
2019	109.35
2018	107.56
2017	105.15
2016	97.46
2015	92.15
2014	82.24
2013	60.45
2012	54.51
2011	53.66
2010	59
2009	54.07
2008	53.93
2007	29.71
2006	26.46
2005	19.02
2004	17.62
2003	11.26
2002	10.57
2001	12.08
2000	11.14

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Release date

August 2024

More information

Region

United States

Survey time period

2000 to 2023

Supplementary notes

Values have been rounded.

In accounting, historical cost is the original monetary value of an economic item. Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition.
U.S. direct investment abroad is defined as ownership by a U.S. investor of at least 10 percent of a foreign business. The direct investor is known as a U.S. parent, and the U.S.-owned foreign business is known as a foreign affiliate. International transactions statistics cover the foreign affiliates’ transactions with their U.S. parents, so these statistics focus on the U.S. parent’s share, or interest, in its affiliates rather than on the affiliates’ overall size or level of operations. The major items include capital flows, which measure the funds that U.S. parents provide to their foreign affiliates, and income, which measures the return on those funds. Direct investment position statistics are stocks and are cumulative; they measure the total outstanding level of U.S. direct investment abroad at year end.

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