Discussion Paper

Decoupling Direct Investment: American Firms’ Retreat from China

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).

https://doi.org/10.17016/2380-7172.4076

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-09-25

Number: 2026-09-25