US firms boost investment in China before leaders' meeting

US companies increased their investment in China in early 2026, according to new data released by Beijing before the two countries’ leaders met earlier this month.

The figures suggest business ties remained active despite broader tensions, and they matter because investment flows are one measure of whether the world’s two largest economies are stabilizing or drifting apart.

  • China has been the largest source of official FDI reporting in many global investment comparisons.
  • US-China business ties have long continued even during periods of sharp political friction.
  • The South China Morning Post often covers trade and investment data with a regional business lens.

US-China Indo-Pacific Rivalry

China and Taiwan coast guard vessels have repeatedly faced off near the Pratas Islands, with the latest standoff showing how small maritime incidents around Taiwan can quickly become confrontations.[1][5] The episode adds to wider U.S.-China military tension across the Indo-Pacific, where Beijing is expanding patrols and Washington is reinforcing regional deterrence.[2][3] The rivalry now centers on preventing miscalculation around Taiwan, the South China Sea, and nearby sea lanes.[1][3][5] It also shapes defense planning by Taiwan, Japan, the Philippines, and the United States as all sides weigh coercion, sovereignty claims, and the risk of escalation.[2][3]

1 January

The United States adopts a sharper great-power competition strategy focused on China
US-China Indo-Pacific Rivalry— full background & timeline