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Decoupling Direct Investment: American Firms’ Retreat from China

Cody Kallen
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Cody Kallen: https://www.federalreserve.gov/econres/cody-f-kallen.htm

No 2026-09-25, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: For decades, China was a major destination for foreign direct investment (FDI) by U.S. companies. In the last decade, however, trade tensions, geopolitical risks, and investment screening have interrupted these FDI flows and led firms to shift production toward third countries (Reyes-Heroles et al., 2020).

Date: 2026-09-25
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:103840

DOI: 10.17016/2380-7172.4076

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