The new study also finds the new picture of U.S.-China FDI differs from the previous two decades, in terms of industry patterns, motives and investment composition. For example, U.S. investment in China has shifted from the early days of seeking lower manufacturing costs to consumer-oriented objectives.
It said that U.S.-China bilateral investment is nowhere near saturation. "Chinese companies have just started to operate overseas" while "U.S. companies are more than ready to increase investment in China, especially to engage the Chinese consumer and compete in growth sectors such as healthcare, research and development and modern services."
"The assumption that FDI flows to China have peaked because it is wealthier today is mistaken," the report said.
Kenneth Jarrett, president of the American Chamber of Commerce in Shanghai, cited a survey early this year that shows that 80 percent of its members said they would increase their investment in China in 2016.
He said the new report came at an important juncture "as we contemplate what the agenda for the incoming Trump administration will be."
Jarrett said much work has been done on the Bilateral Investment Treaty (BIT) between China and the U.S., and hoped it would be a valuable policy objective for the new administration as well. He argued that in the BIT, China will give much more than the U.S., because the U.S. investment environment is quite open already.
There has been widespread concern whether or not BIT negotiations will still be viable in the Trump administration given the fate of the Trans-Pacific Partnership, which Trump and the new Congress have decided to put to death.
"President Trump talks about good deals and bad deals. This would fall into the category of good deals," Orlins said of the BIT between China and the U.S..
John Wadsworth Jr, co-founder of Manitou Ventures, described the BIT as "the biggest opportunity on earth for financial services."
In Washington on Nov 21-23, China and the U.S. will meet for the 27th session of their Joint Commission on Commerce and Trade, with the Chinese delegation led by Vice-Premier Wang Yang and the U.S. team led by Commerce Secretary Penny Pritzker and U.S. Trade Representative Michael Froman. The annual meeting, first launched in 1983, will address bilateral investment and trade issues.
