Chinese deal activity in the US has fallen to its lowest level in almost two decades, in a sign of geopolitical tensions between the two countries weighing on cross-border financial activity, reports the Financial Times. US merger and acquisition investment from China has totalled just $221 million so far this year, representing the slowest pace of investment since 2006, according to data from Dealogic. The total at this point last year was $3.4 billion.
The figure contrasts with growing investment into mainland China and highlights the impact of geopolitics on a previously booming cross-border financial sector that for years provided a bridge for Chinese businesses into lucrative western markets.
Besides the US, Dealogic data showed just $189 million of Chinese deals in Germany so far this year, the lowest amount in more than a decade, while activity in the UK and Australia has totalled $503 million and $228 million so far. There are no recorded deal figures for Canada.