Direct investment includes mergers, acquisitions and investments in things like offices and factories but not financial investments like purchase of stocks and bonds.
The report found that Chinese direct investment in the US virtually vanished — falling to to $200 million in January-March quarter of this year, as the coronavirus
pandemic hammered the world economy.
US investment in China, meanwhile, ticked up last year to $14 billion from $13 billion in 2018. But that increase largely reflected previously announced projects, including Tesla's factory in Shanghai.
Two-way investment between the US and China fell to a seven-year low, the report found. US regulators, worried that China will gain access to sensitive American technology, have been taking a harder look at Chinese investment
in the US, a shift mandated by a 2018 law.
The two countries have also sparred over the US charges that China uses abusive tactics, including forcing foreign companies to hand over trade secrets and outright cyber theft, in its effort to surpass American technological dominance.
US President Donald Trump has imposed tariffs on about $360 billion worth of Chinese goods.
The Trump administration and Beijing reached an interim trade agreement in January intended to ease the tension. But the pact was quickly overtaken by the Covid-19 pandemic.