The New York-based Rhodium Group reported last week that  Chinese foreign direct investment in the U.S. plummeted 92% in the first half of 2018 compared with the same period in 2017. It said this may stay low for a while due to the current political environment and Chinese capital restrictions. The report showed:

Chinese companies completed acquisitions and greenfield investments worth $1.8 billion — a drop of 92% from 1H 2017 and the lowest level in 7 years. The pace of newly announced transactions remained similarly depressed.

Cumulative 2018 net Chinese FDI in the U.S. is negative $7.8 billion if it includes asset divestitures. Chinese investors sold $9.6 billion of U.S. assets in the first 5 months of 2018, mostly driven by deleveraging pressures from Beijing.

A director at Rhodium, says while Chinese restrictions on capital outflows remain the primary reason for the drop in investment, U.S. policy and politics are an increasingly important factor.