==CHINESE DIRECT INVESTMENT IN CALIFORNIA
BY DANIEL H. ROSEN AND THILO
ANEMANN
October 2012==
Indeed, our recent report,An American Open Door?Maximizing the Benefits of Chinese Foreign Direct
Investment (published in 2011 by the Asia Society Center on U.S.–China Relations and the –Kissinger
Institute on China at the Woodrow Wilson International Center for Scholars)–== estimated that by 2020,
some $1 trillion to $2 trillion of new investment capital will have fl owed out of China.== In other words,
the river of investment that once ran almost exclusively from West to East is now beginning to fl ow
in the other direction as well, from East to West.
As a follow-up to our last report, which looked generally at FDI fl ows from China to the United
States, we thought that it would make sense to look at the question through the lens of a specifi c
geographic region. Because California is not only the largest and arguably most iconic state in the
United States, but also a dynamic and varied economy with a historical relationship with China, we
thought that it was an obvious and logical choice. Again we chose to work with Daniel H. Rosen
and Th ilo Hanemann of Rhodium Group to help us illuminate the actual state of past fl ows of direct
investment into California and to suggest what future fl ows can be anticipated. Th e report also recommends how the state might interface more eff ectively with Chinese state-owned and private investors
to encourage further investment.
Toward that end, the Asia Society is pleased to off er this study. We do so in the hope that this eff ort
will be of some utility to the state of California as it goes about the process of encouraging more
Chinese investment.
We are also pleased to be working with California Governor Jerry Brown and other state offi cials in
the belief that the state’s economy can be invigorated by increased FDI from China and that, if we are
successful, something of a model for other states can be created as well.
Finally, it is worth noting that although eff orts to encourage mutually constructive kinds of Chinese
investment in California will most certainly help forge closer relations between the state and China,
we are also hopeful that in some modest way, they also will help cement better relations between
the United States and China. For, as fraught as this bilateral relationship can be, because so many global problems cannot be remedied without joint Sino–U.S. action, it has become an inescapably important one.
Read full article here
https://asiasociety.org/files/pdf/Asia_Society_China_CA_Investment_Report_FINAL.pdf