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The investment war will only harm the interests of the US economy.
REPUBLIKA.CO.ID, WASHINGTON – An influential banker warned Monday that the Trump Administration should target investments in the US-China trade war. However, the war will only harm the interests and economic well-being of America.
Dominic Ng, CEO of East West Bank based in Los Angeles, said in an article sent to Xinhua . The East West Bank is one of the top five banks on the annual list of Bank of America in 2018.
Ng says that the investment war is possible. This is in view of the President's confrontational and unpredictable approach to China and the international economy in general.
Given incoherent and incoherent statements by President Donald Trump and his senior officials, Mr. Ng believes that the Trump administration can politicize legislation in order to broaden the selection of foreign investment. They use national security as an excuse.
Restrictions on these investments will further reduce China's already reduced investment in the United States. Read more, Worrying World of Trade War between China and the United States
According to a report by the Rhodium group published at the end of June, China's direct investment in the United States is estimated at $ 1.8 billion first five months of 2018, down 90 percent from the same period last year.
Ng blames the decline of investment in the study of the Foreign Investment Committee in the United States and the policy of confrontation vis-à-vis China. "China's overall investment coming out has rebounded to levels before 2016, and it is strongly recovered in Europe – in stark contrast to the US image," commented ng.
Restrictions on Chinese companies, he said will further divert the capital of China to Europe and other economies. Indeed, no government mechanism or agency is legally responsible for applying investment restrictions on a case-by-case basis.
In this article, bankers cited US restrictions on Chinese auto investment. It could have killed investments like the Fuyao glbad car maker in Ohio or the Giti Tire factory in South Carolina, each supporting hundreds of blue-collar workers.
In this article, Ng also warned the Trump government not to underestimate. He considered, China can maximize the US companies that currently enjoy the benefits of the Chinese market.
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