In what has been seen as a trickle-down effect, Chinese businesses investing in real estate on foreign soil-particularly in the US-have begun to downsize their assets, selling off what they can afford to lose and what they don't need.
The yuan has been in big trouble. Per Taiwan News, the Trump administration's imposed tariffs were not kind to the Chinese economy at all. All options have been considered by the government and the private business sector is trying to do its part; for some businesses, that meant parting with assets that they have amassed over the years.
It's a trend that has been seen in most Chinese companies reeling from the effects of the US' trade tariffs. In a study, it appears the reactive Chinese has been selling more than they are buying a first in 10 years for China. Compared to purchases of $126.2 million all those years, they have already sold $1.29 billion worth of properties.
CNBC reviews what has been a big effect for the US in the trade war-the lack of foreign investments coming in from other nations, most particularly, the embattled economy, China.
The Trump administration has set out to do one thing-protect the US' interests and succeeded in doing another. There has been a big drop in foreign investments coming in since the US imposed its tariffs on Chinese goods. The drop has largely been due to fears that China may only be the beginning, and other nations are equally at risk.
It's not just the tariffs. An increasing anti-immigrant sentiment set by the government is scaring potential investors away. Instead of attracting what could be a benefit to the economy, the Trump administration's America-first policy has succeeded in driving globalization far away from the US.
Despite the selling off of key US real estate assets, China still appears to be safe, according to analysts. China has its industrial growth to lean on, whatever amount of tariffs the US decides to impose on it. It does, as always, rely on a quick positive reaction from the government to help it survive.
