According to a report published by the Organization for International Investment (OII), the US registered a foreign direct investment (FDI) of negative $8.2 billion in the second quarter of 2018, compared with the previous quarter’s net FDI of $63.7 billion, Xinhua reported on Sept. 27.
It was the first negative FDI figure since the second quarter of 2014. The drop in FDI indicates that transnational corporations have suspended potential investment in the US, no doubt due to the tariff policy on imports and other trade policies implemented by the Trump administration.
The report pointed out that FDI has directly driven the American economy forward. Transnational firms have created more than 6.8 million jobs in the US through building factories and running businesses there. They have also boosted technological research and development in the US.
The report said that the US remains an attractive investment destination. However, the global competition for FDI is becoming fierce as more countries race to position themselves as investment destinations.