China’s outward foreign direct investment (OFDI) expanded significantly in the past decade, but the majority of the investment has gone to countries in the developing world. However, in recent years the focus of Chinese investors has started to shift to North America and Europe. Since 2009, Chinese direct investment in America and Europe has increased sharply, and developed economy-bound flows are poised to grow heavily through 2020, according to Rhodium Group estimates. Policymakers are still grappling with the proper policy response, but significant progress has been made in the United States over the past two years. The key impediments Chinese firms face when setting up US shops are inexperience and lack of capabilities rather than political shenanigans. For American businesses, the growth of Chinese investment does pose certain risks, most importantly new competition at home and abroad, but it also brings invaluable new opportunities, such as divestment of assets, co-investment, and new business opportunities in China.  Read more…