Forum: overcoming investment challenges between China, U.S.(4)

Kevin Klowden, executive director for the Milken Institute's Center for Regional Economics and California Center, addresses the audience at an event organized by CGCC on Chinese investment in the u.s. in Los Angeles on Thursday. (CHINA DAILY/LIU YINMENG)

The survey found there's been a nearly 90 percent decline in FDI in 2019 from its highest level in 2016.

The business leaders also indicated that they grapple with the complexity of the regulatory, tax and legal environment in the U.S..

Despite the challenges, the U.S. remains a key investment target for Chinese companies, with 55 percent indicating that the U.S. market is a top three priority, the study noted.

The Chinese and the U.S. economies represent 40 percent of global GDP, yet China accounts for less than 2 percent of overall foreign direct investment in the U.S..

"Unlocking the abundant growth potential and enormous economic and social benefits that Chinese investment creates requires an open yet well-regulated market that gives foreign and domestic businesses equal opportunities to succeed," Xu Chen, chairman of China General Chamber of Commerce-USA, CEO of Bank of China USA, wrote in the report.