The US could lose 1 to 2 trillion US dollar in revenue if they successfully scare away Chinese investors, writes Shaun Rein in CNBC, quoting a recent Asia Society report. “Fear mongering about China by American politicians and businessmen like Donald Trump has made Chinese think twice about investing in the U.S.”
A few months ago I was interviewing salespeople in luxury boutiques like Louis Vuitton and Gucci along 5th Avenue in New York. “60 percent of our customers are Chinese,” a salesman at one store told me. “20 percent are Brazilians, and the rest are Europeans and Americans. A few years ago, it was mostly Americans, but not anymore.”…
There are some retail outlets in the U.S. that have been wise enough to adapt their strategy to accommodate high-spending Chinese tourists, including hiring more Mandarin-speaking salespeople. But not all American retailers are that foresighted.
Also Chinese investors have shifted their preference from the US to Europe, Rein says:
In recent interviews, most executives told us they plan to focus on Europe rather than the U.S. because they fear
increasing anti-Chinese sentiment here. Cases like telecom giant Huawei’s rejected attempt to acquire 3Leaf Systems have made them nervous, while in Europe the welcome mat is being rolled out for investors.