6/26/2018
By Charles Payne

The market was slammed on Monday due to reports of the White House’s preparedness to curb investments in certain industries that could benefit the Chinese government’s “Made in China 2025” ambitions. 

While the focus has been on controlling trade in an effort to open China’s market, to stop the shakedown of foreign businesses, and to curb the theft of intellectual property, yesterday’s news had a different angle. 

According to reports, the Trump Administration is considering slowing investments by companies that have 25% or more ownership. Chinese investment into the United States soared into the election of President Trump - from 2000 to the first quarter of 2018, there have been 1,556 deals worth $139.9 billion.

• 1990 to 2015: $64 billion
• 2016: $45.0 billion
• 2017: $29.0 billion

A big part of last year’s China direct investment slowdown was a combination of China’s efforts to slow capital flight, and the Committee on Foreign Investment in the United States’ (CFIUS) actions.

It is unlikely the administration’s potential new rules would have held up many deals accomplished over the past two decades. Late in the session, Peter Navarro spoke and tried to calm the market, which saw the Dow rebound almost 200 points, but the Street was determined to send Trump & Co. a warning.  

Charles Payne
Wall Street Strategies

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