Chinese investment in the U.S. is no reason to get nervous


By Derek Scissors, Ph.D. and Amy Payne —— Bio and Archives January 11, 2013

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China set a record with its investments around the world in 2012. And in the United States, China shattered its previous investment record.

Before people start panicking, it’s important to know: This is not a bad thing.

First, let’s put it in perspective. Chinese investment is still very, very small as compared to the size of the U.S. economy. At the national level, the stock of investment is barely $50 billion—which sounds large, but is negligible compared to a stock of American wealth of more than $60 trillion.

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Heritage Foundation Derek Scissors, Ph.D. and Amy Payne -- Bio and Archives | Comments

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