China's direct investment in United States last year was US$73 million according to a report released recently by US Chamber of Commerce. Statistics from China's Ministry of Commerce indicate that the total amount of the country's direct investment overseas last year was US$6.92 billion with direct investment in the US only accounting for about 1 percent, reported Beijing Business Today on June 5.

The report from the US Chamber of Commerce shows that the US remains very attractive to foreign investors. Foreign direct investment in the US last year exceeded the US$86.21 billion of 2004. Of that investment the UK took the lead position, reaching US$30.31 billion surpassing the US$23.28 billion of 2004. Investment from Japan increased for the first time since 2000 reaching US$3.56 billion. The United Arab Emirates' direct investment in the US in 2005 also rose from US$520 million in 2004 to US$1.93 billion.

Last August, China National Offshore Oil Corporation (CNOOC), the country's third largest oil and gas producer, dropped its US$18.5 billion bid for Unical, putting an end to its 40-day merger bid for the American company which triggered an unexpected political storm in the US. China's direct investment in the US fell from US$93 million in 2004 to US$73 million in 2005.

"If the purchase had been successful then the amount of investment would be very different," said Song Hong, director of World Economy and Politics Research Center of the Chinese Academy of Social Sciences.

According to Kang Rongping from the same research center, success or failure with one project not only affects the total investment but also impacts on other areas of potential investment. China's investment in the US varies greatly each year. If the CNOOC had purchased Unical last year, China's investment focus would be on petroleum. And if China's largest home appliance manufacturer, Haier, had successfully bought US firm Maytag Corp, then home appliances would have become the focus of investment.

(China.org.cn by Wang Qian, June 9, 2006)