North American 2019 Investment into Asia

2019 has been a pivotal year for US and Canadian foreign investment in Asia.

North America Investment into China Remains Strong

Much like the prior year, the dominating issue, at least for US firms, continues to be the so-called “Trade War” between China and the US. The last year has seen a rollercoaster ride of policies and initiatives between the two sides, with unfortunately no positive resolution yet in hand.

Despite these headwinds, interest in FDI into China from our North American clients remains strong. With the trade barriers between the US and China affecting a significant number of industries, Canadian firms have taken advantage to deepen their already strong investment and trade links with the PRC. Even US firms, especially in the IT and high-tech manufacturing sectors, have shown new interest in establishing operations in China.

Looking Ahead to Investment Opportunities in Asia

Looking ahead, China’s new foreign investment law brings with it new compliance requirements to understand for newcomers and companies already operating in the country alike.

New opportunities in ASEAN or India present a silver lining to the trade headwinds. Firms impacted by the Trade War should take this chance to thoroughly examine adopting a “China Plus One” strategy, thereby supplementing their China operations with one or more of the nearby emerging economies.

Vietnam, in particular, continued its forward march of development in 2019, and looking ahead to 2020, offers investment opportunities not only in manufacturing, but in the IT and software development, professional services, and trading sectors.

On the other hand, Singapore presents an ever-improving alternative to Hong Kong as a regional HQ or treasury center, especially in light of recent protests in the territory.

Indeed 2019 has introduced its share of challenges for North American firms in Asia. Yet as in most times of change, new opportunities have emerged regionally for those firms ready to seize upon them.

Further Information on US Business in Asia

For further information on our North America Desk and the work we do with US businesses, see here.

Additionally, you can browse and subscribe to our Asiapedia resource library for the latest resources around doing business in Asia.

Written by:

Dustin Daugherty Head of North America Business Development

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