Foreign Direct Investment in the U.S. Rises in 2018

Graphic on New Foreign Direct Investment Expenditures by Type, 1996-2018. (U.S. Bureau of Economic Analysis)

On July 2, the Commerce Department’s Bureau of Economic Analysis (BEA) released updated annual statistics on the amount and characteristics of new investments in the United States by foreign investors.

Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion in 2018, up 8.7 percent from $272.8 billion in 2017.

Additional highlights of the statistics on new foreign direct investment for 2018:

  • Expenditures for acquisitions were $287.3 billion, expenditures to establish new U.S. businesses were $5.3 billion, and expenditures to expand existing foreign-owned businesses were $3.8 billion.
  • Total planned greenfield investment expenditures—expenditures to establish new U.S. businesses and to expand existing foreign-owned U.S. businesses—for investments initiated in 2018, which include both first-year spending and planned spending in other years, totaled $30.8 billion.
  • Employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 430,600 in 2018.

Opening Remarks by U.S. Commerce Secretary Wilbur L. Ross at the 2019 SelectUSA Investment Summit

Thank you, Karen, for that kind introduction, and a good morning to all of you. Welcome to the Sixth Annual SelectUSA Investment Summit.

Thank you, everyone, for making the trip to Washington, D.C., to learn about the great investment opportunities throughout the United States.

We appreciate the time you are taking from your busy schedules to investigate opportunities to grow your enterprises here in the most innovative country in the world.

The response to this year’s Summit was so strong that we had to add overflow rooms due to capacity limitations. Even with that, we had to turn down some late responders.

Thank you to the state economic development delegations who are here and to the country delegations in attendance.

We very much appreciate the support of all our embassies in recruiting attendees, and the 120 members of the U.S. diplomatic corps who have traveled with your country delegations to Washington for this event.

And a special thank you to the nearly 1,400 foreign delegates from 78 markets, who are here today. We hope that you have a productive next two days.

We are also thrilled that four Cabinet Secretaries, and Larry Kudlow, Director of the White House National Economic Council, will be addressing the conference; as will Ivanka Trump, who will be with us tomorrow.

It’s a clear demonstration of the commitment of the entire U.S. government to embracing and encouraging your investments in the United States.

We also have eight Governors attending:

The Governor of Indiana, Eric Holcomb;
Governor Matt Bevin, from Kentucky;
Governor of Maryland, Larry Hogan;
Mississippi Governor, Phil Bryant;
The Governor of Oklahoma, Kevin Stitt;
Mike DeWine, the Governor of Ohio;
Puerto Rico Governor, Ricardo Rossello;
and the Governor of Michigan, Gretchen Whitmer.

All of them are interested in hosting you in their states.

This is my third Investment Summit. I look forward to it every year. It is an exciting three days.
Please use this event as a springboard to visit the states to learn just how committed they are to working with you to develop new business opportunities.

Nowhere else but in the United States will you find such an advantageous mixture of innovation, entrepreneurship, diversity, a dedication to hard work, and an incredibly high quality of life.

Our unique, dynamic population of 328 million provides companies with direct links to every global market.

Opening operations in the United States provides your company with access to the wealthiest and most discerning consumers in the world. Being close to American customers drives the digitization of your operations and your products, making them more appealing everywhere in the world you sell them.

The SelectUSA Investment Summit is the largest annual economic development conference in the United States. The companies and economic development officials in attendance make connections and help create the successes that come from the event.

Past attendees have announced almost $104 billion in new investment projects within five years of attending the Investment Summit.

Those projects support more than 167,000 American jobs.

That tells me a few things:

First, that the executives who attend this event are ready to grow and renew their companies.
Second, that companies know that investing in the United States will help assure their long-term competitive viability, not only in the United States, but also in their home countries.

Foreign firms who have invested in the United States know that if they are successful here, they will be successful anywhere else in the world.

And, third, the Summit provides our economic development leaders from the states and territories with a unique opportunity to work with your company and, perchance, to close a deal.

Year after year, this Summit brings the right people together in one place to meet and develop life-changing partnerships, and life-long friendships.

It is important for you to know that America is, and always will be, open for business.

We are a society that welcomes new companies from abroad, in ways that most foreigners find surprising, and refreshing.

We are a society that embraces free-market capitalism as an economic model that fosters optimism, and opportunity for all. More than 7 million Americans are gainfully working for foreign-owned firms in the United States.

Any company that has opened a facility in the United States knows just how hard Americans work.
They are dedicated to learning and using the latest technologies to grow existing businesses, and to help start new ones.

The United States welcomes foreign companies of all sizes, and in a wide range of industries.
French sporting goods retailer “Decathlon” attended last year’s Investment Summit and recently opened its first outlet in Emeryville, California.

The company said the SelectUSA Investment Summit provided it with the legal, regulatory, and economic understanding it needed to succeed.

While at the Summit, the French company also connected with officials from the California economic development community. These officials continue to support the company and its indigenous growth.

In just a year, Decathalon added 97 workers in California, and has access to the incredibly powerful consumer base on the West Coast.

On the larger side of the size spectrum, South Korean energy storage company SK Innovation attended SelectUSA Investment Summits in 2013 and 2018.

Just three months ago, I had the honor of attending the groundbreaking of SK’s $1.7 billion electric-battery facility in Commerce, Georgia.

I was joined by SK Innovation CEO and President Jun Kim; Executive Vice Chairman, Jae-won Chey; Georgia Governor Brian Kemp; and leaders from across Georgia to celebrate the company’s investment in Georgia.

Taiwan’s Lung-Soon Ocean Group is creating 50 jobs in Astoria, Oregon, in a $10 million pet food processing plant that will open next year.

Canada’s New Flyer opened a new $30 million, 300,000-square-foot bus manufacturing facility in Shepherdsville, Kentucky, and will hire 350 workers.

The company from Pakistan, Midwest Fertilizer, is opening a $2.4 billion fertilizer plant in Indianapolis next year.

Finally, South Korea-based LOTTE Chemical USA entered a joint venture with Texas-based Westlake Chemical Corporation for a $3.1 billion ethane cracker complex in Lake Charles, Louisiana.

The facility will employ 250 people directly, and support 2,000 indirect jobs in the area.
The United States welcomes all of these companies with open arms, just as it has welcomed thousands of other foreign-owned companies that have committed more than $4 trillion in FDI in the United States.

The United States is the world’s biggest destination for FDI.

And there are good reasons why.

We have reduced the corporate tax rate; provided 100 percent of capex; and created Opportunity Zones — all to substantially improve the competitiveness of U.S.-based producers.

We are eliminating senseless regulations that hinder your investment in new plants and equipment.

We are defending American producers from foreign nations that dump government-subsidized products into the U.S. and global markets, or that have refused to play by the global rules of trade.
We will protect your most strategic asset: your intellectual property. We will staunchly defend your business from nations that are selling fakes and counterfeits.

And we are training a new generation of skilled workers.

Ivanka Trump will describe our new worker and training programs later in the summit.

These pro-business and workforce policies are paying off.

America continues to astound the world with its economic growth rates.

At 3.6 percent, our unemployment rate is lower than it has been in decades, and incomes are finally on the rise.

The United States remains a land of opportunity.

For the seventh straight year, global CEOs ranked the U.S. at the top of A.T. Kearney’s FDI Confidence Index.

This is due in large part to our openness to new ideas, and to investment from companies like yours.

Taking advantage of everything available to you at this Investment Summit will positively change both the course of your business, and your own personal life trajectory.

The networking and match-making sessions will give you the chance to reach new partners, and to meet people who are here for only one reason: To help you succeed.

Our plenary discussions and breakouts provide you with the viewpoints of government officials and the world’s top business leaders who have successfully navigated the path to growth in the United States.

I wish you all the best of success this week in making contacts and working together.Please, take time to visit all of the booths in the exhibition hall. Each has something unique to offer.

The representatives here from the states and territories are looking forward to working with you.
Thank you and welcome again to this exciting event.

Remarks by U.S. Commerce Secretary Wilbur L. Ross at the Paris Air Show Press Event at the National Press Club, Washington, D.C.

Wilbur L.Ross, Introduced by Tom Kallman, President and CEO of Kallman Worldwide, organizer of the USA Partnership Pavilion.

Thank you, Tom, for that kind introduction, and thank you and your staff for all of the work you are doing to organize and promote U.S. participation at the Paris Air Show.

It is my pleasure to be here to discuss the U.S. government’s engagement in the Show. It will be the largest and most dramatic ever, as is reflected by the fact that our aerospace and space industries are more vibrant than they have ever been.

The U.S. has the largest and most competitive aerospace and outer-space industries, and that is why 350 American companies will attend this year’s show in Paris.

Our industry has a lot to show off. American companies produce the most innovative, highest quality, highest value-added products, sold wherever there are flying machines. The U.S. aerospace sector has the largest trade surplus of any other American manufacturing industry, at $88 billion last year. And, of total U.S. aerospace production last year of $215 billion, a very large portion of that output — $150 billion — or 70 percent, was exported. We are the largest exporter of aerospace equipment in the world.

We will have a strong contingent of Federal government officials attending the Paris Air Show, including myself. There will be representatives from the Department of Defense, the Navy, Air Force, Marine Corps, Army; the departments of State and Homeland Security; as well as the FAA, NASA, and the Export and Import Bank.

We look forward to celebrating the 50th Anniversary of the Apollo Moon landing, with the presence of three Apollo astronauts who were part of those missions: Walt Cunningham from Apollo 7; Charlie Duke from Apollo 16; And Col. Al Worden, the Command Module Pilot for the Apollo 15 lunar mission in 1971, from whom we will hear shortly. It is great to be in the presence of the pioneering individuals who circled and walked on the Moon.

Fifty years have gone by without our returning. Today, a majority of Americans — 211.6 million, or 65 percent — were born after 1969, and have no recollection of the Moon landing and the excitement it generated the world over. We need to change that; and we’re going to change it fast.

President Trump has directed that that we put astronauts back on the Moon by 2024, and this time it will not just be men, but also women. The key message we intend to deliver in Paris is that the U.S. aerospace industry is stronger than it’s ever been, and that partnerships are important in a world where there are alternative views about the future of space. Within the Trump administration and the Commerce Department, we see the future of space as overwhelmingly commercial. This is why we will meet later this month — on June 26th and 27th — at the Space Enterprise Summit, which I will co-host with Secretary Pompeo, in Washington, D.C.

There is a lot happening in the area of commercial space. NASA will be announcing new contracting opportunities tomorrow for the International Space Station. And, I understand that the National Reconnaissance Office has announced new contracts with the commercial remote sensing industry, with companies like Maxar Technologies, Planet, and BlackSky Global.

Last month, I signed a wide-ranging space MOU with the Grand Duchy of Luxembourg. This MOU is indicative of the partnerships required to expand the space industry from its current level of $400 billion to $1 trillion. GPS, earth imaging, telecommunications, asteroid mining, manufacturing, space tourism, and exploration all depend on space safety, space situational awareness, and the safe operation of satellites.

Our Paris message is that all space-faring nations must work together on common issues, such as tracking the thousands of pieces of space debris that could stifle the commercialization of space.

Our country has experienced an incredible re-awaking of its commercial space industry. Today, thanks to the infusion of new blood, new thinking, and a youthful cadre of enthusiastic engineers, scientists, and entrepreneurs, the U.S. space industry is being transformed.

In the tradition that has defined this industry since brothers Wilbur and Orville Wright were the first to fly, a new generation of entrepreneurs now dominate the majority of space activity. For these companies to reach their potential, it is the U.S. government’s job to eliminate the regulatory barriers to growth.

We look forward to working with other countries at creating the conditions by which these industries can flourish.

I look forward to being in Paris to work with so many innovative companies, and meeting officials from other governments and their space agencies, to foster the technical, regulatory, and financial conditions for the global space economy to grow and prosper. Thank you.

Ivanka Trump and Larry Kudlow to Provide Keynote Remarks at 2019 SelectUSA Investment Summit

WASHINGTON – Advisor to the President Ivanka Trump and National Economic Council Director Larry Kudlow will deliver keynote remarks at the SelectUSA Investment Summit on June 11-12, the U.S. Department of Commerce announced today. The Investment Summit, hosted by Secretary of Commerce Wilbur Ross, is the premier Federal event showcasing business investment opportunities available throughout the United States to global leaders.

Kudlow will deliver lunch remarks on June 11. Trump will speak on a workforce development panel on June 12.

“This Administration’s policies are further solidifying the United States as the premier location to do business,” Kudlow said. “The SelectUSA Investment Summit is an excellent platform to tell a global audience that investing in the United States is a critical step to doing business in the modern global economy, and I am excited to be a part of it.”

“While President’s pro-growth policies have attracted the attention of business leaders and entrepreneurs around the world, it’s our incomparable workforce that often seals the deal for new investment projects. I’m proud to join Secretary Ross at this year’s SelectUSA Investment Summit to discuss the unparalleled opportunity to invest in our roaring economy and how we are working to ensure our workforce is equipped with the skills and talents for the jobs of today and tomorrow,” Trump said.

“The SelectUSA Investment Summit is where global business potential meets business opportunity here in the United States,” Secretary Ross said. “We are proud that these White House leaders will be joining this year’s SelectUSA Investment Summit and sharing the message that this is the best place in the world to do business.”

Secretary Ross and Ivanka Trump are co-chairs of the National Council for the American Worker and the American Workforce Policy Advisory Board which seeks to bring more Americans off the sidelines and into the workforce by improving jobs data transparency, skills-based hiring and training, advancing opportunities for lifelong learning, and promoting multiple pathways to family-sustaining careers.

Ross and Trump will also join Investment Summit business attendees as they sign the Pledge to America’s Workers. The Pledge is a commitment to expand programs that educate, train, and reskill American workers from high school to near retirement. Since President Trump signed the Executive Order, more than 200 companies and organizations have signed the Pledge, contributing to over 8.9 million new education and training opportunities for American students and workers over the next five years.

The annual Investment Summit will be held June 10-12 at the Washington Hilton in Washington, D.C. Participants from the previous five Summits have announced more than $103.6 billion in greenfield investment projects in the United States within five years of attending. These projects directly support more than 167,000 U.S. jobs.

Registration is open and already includes more than 2,800 attendees from over 70 international markets and 49 U.S. states and territories. Featured speakers include Secretary of the Treasury Steven Mnuchin, Secretary of Agriculture Sonny Perdue, Secretary of Housing and Urban Development Ben Carson, Secretary of Energy Rick Perry, governors from eight states, and senior executives from companies including Hitachi, Siemens, and Softbank.

The United States is home to more foreign direct investment (FDI) than any other country in the world, with a total stock of more than $4 trillion of investment according to the latest data. FDI supports nearly 14 million American jobs, and is responsible for $370 billion in U.S. goods exports.

Treasury International Capital Data for March

Washington – The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for March 2019. The next release, which will report on data for April 2019, is scheduled for June 17, 2019.

The sum total in March of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC outflow of $8.1 billion. Of this, net foreign private inflows were $13.6 billion, and net foreign official outflows were $21.7 billion.

Foreign residents decreased their holdings of long-term U.S. securities in March; net sales were $30.3 billion. Net sales by private foreign investors were $20.6 billion, while net sales by foreign official institutions were $9.7 billion.

U.S. residents decreased their holdings of long-term foreign securities, with net sales of $1.9 billion.

Taking into account transactions in both foreign and U.S. securities, net foreign sales of long-term securities were $28.4 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, overall net foreign sales of long-term securities are estimated to have been $40.6 billion in March.

Foreign residents increased their holdings of U.S. Treasury bills by $23.9 billion. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $69.7 billion.

Banks’ own net dollar-denominated liabilities to foreign residents decreased by $37.2 billion.

Remarks by Secretary Wilbur L. Ross at the 2019 AAPI Summit

Introduced by Henry Childs, National Director of the Commerce Department’s Minority Business Development Agency

Thank you, Henry, for that kind introduction, and for your hard work and dedication to the economic development of America’s minority communities.

Welcome, everyone, to the 2019 National AAPI Business Summit. It is great to see such a large turnout.

Yesterday, I had the privilege of joining President Trump in the Oval Office for the signing ceremony of the Executive Order on the Economic Empowerment of Asian Americans and Pacific Islanders. I was especially gratified by the ceremony because in my former private-equity firm, we had Chinese Americans, Korean Americans, Japanese Americans, and Indian Americans in executive positions.

And my first Chief of Staff at Commerce was a Japanese American woman, the first ever for a Cabinet Secretary. So, I personally understand the outstanding qualities of your community.

The Executive Order signed by the President establishes the President’s Advisory Council on Asian Americans and Pacific Islanders, as well as the White House Initiative on A-A-P-I. The Advisory Council will be established here at the Commerce Department, and I look forward to being a co-chair with Elaine Chao, our esteemed Secretary of Transportation.

Our joint intention is to do exactly as the President’s Executive Order states — that is, to develop, monitor, and coordinate all of the government’s efforts to empower the growth of this dynamic segment of our population and business community.

We will develop strategies to increase participation of AAPI enterprises in partnerships between the public and private sectors. We will train a new generation of skilled workers who are in demand throughout every industry sector. And we will conduct an analysis of the United States Pacific Island territories to help them diversify and grow their economies.

Stay tuned: We will soon be issuing a notice seeking private-sector members of this Commission.

Holly Ham, the Executive Director of the White House AAPI Initiative, will be closing our Summit today, and we are honored to have her here.

Today, there are 23.8 million Asian Americans and Pacific Islanders who call the United States their home. The number of AAPI residents will soon eclipse 25 million, and will grow to more than 40 million over the next three decades. Asia accounts for six of the 10 largest countries for American immigrants. Of the 22.2 million Americans of direct Asian descent, 12.6 million — or more than half — were born in their home countries. And, according to the Commerce Department’s Census Bureau — which loves to count everything — Asian Americans drive 6,487,806 vehicles.

Among the Asian Americans in the workforce, 53.5 percent are employed in occupations involving management, business, science and the arts. But only 62.5 percent of Asian Americans of working age are in the workforce; though that number is much higher for Pacific Islanders, whose workforce participation rate is 68.5 percent.

Increasing the workforce participation rate is a challenge we face across our entire economy, and we will be addressing it with the new Commission, as well as with the National Council for the American Worker, which I co-chair with Ivanka Trump.

Of the 1.1 million minority-owned firms with paid employees, more than half, or 560,000 are owned by Asian Americans and Pacific Islanders. This entrepreneurial drive is essential for the continued dynamism and success of American capitalism.

The Commerce Department is helping AAPI-owned companies succeed here in the United States and in every major market abroad. We have Manufacturing Extension Partnership centers assisting manufacturers in every state. We have U.S. Export Assistance Centers located in 106 American cities, staffed by export specialists helping companies penetrate new markets.

The Commerce Department also runs the Foreign Commercial Service, with offices in 119 foreign cities, and 78 countries. In China alone, we have outposts in six major cities, along with one in Hong Kong, employing 120 professionals working with American companies to break down barriers to our products.

These diplomats have one primary task: To increase commercial opportunities in foreign markets for American companies. These markets are home to billions of consumers ready and willing to buy the great products made by AAPI-owned firms.

Please, utilize these resources: mostly they are free, so it’s a pretty good bargain.

But the United States is committed to free, fair, and reciprocal trade and is working to open markets across the globe to your products and services.

The most recent “Foreign Trade Barriers” report, from the Office of the U.S. Trade Representative, lists an astounding 517 pages of trade barriers erected by various countries against American exporters.

However, the Trump Administration has finally, and firmly, told our trading partners that we will no longer allow them brazenly to break the global rules of trade, discourage U.S. imports, and flood our open markets with government-subsidized products. Our trade policy toward China, for example, is not about a clash of civilizations.

It is a matter of fair versus unfair.

It is about addressing mercantilism, and fulfilling the promise President Trump made in his campaign to put America First.

Our trade dispute with China is also about making sure that our companies’ most precious assets — namely, your intellectual property — is not stolen through cyber attacks, forced technology transfers, or state-sponsored industrial espionage.

We do not want to see one American company have to fight the scourge of reverse-engineered, mass-produced counterfeits that are replicas of the real products. We want to ensure that you have affective rights to pursue administrative, civil, and criminal enforcement remedies to protect your IP in foreign markets.

Virtually every important U.S. industry is being targeted: From software, to pharmaceuticals, telecom, electronics, robotics, advanced materials, electric vehicles, processed foods, and every category of consumer goods. Worse yet, fakes and counterfeits are now exploding onto e-commerce marketplaces, making it even harder to enforce our laws and eliminate bad actors. For decades, the U.S. government allowed these illegal foreign trade practices to flourish.

Now, we are confronting them and insisting that they be addressed. And while a period of confrontation is always uncomfortable, in the end, everyone is better off.

China announced yesterday that they were imposing retaliatory duties on the remainder of our exports to them. They had already assessed retaliatory duties on something like 90 percent of their American imports.

But, in view of the fact that we have raised tariffs on more than $500 billion in imports from China, this was a relatively restrained response.

Because we export so little to China compared to what we import from them, the impact of the Chinese tariffs is a very small fraction of 1 percent of our total $18 trillion economy. Rest assured, that our current trade issues with China or other countries in the region will not spill over into attitudes regarding the AAPI community.

While we are addressing these trade practices with China, we are also currently engaged with Japan in developing a trade agreement. And we have concluded successful renegotiations of the Korea Free Trade Agreement and transformed NAFTA into the United States Mexico Canada Agreement.

Our administration has also broadened our strategic engagement with Asia to include the entire Indo-Pacific region.

Last week, I was in New Delhi meeting with Indian Prime Minister Modi, along with his Finance and Commerce Ministers, and with more than 100 U.S. companies wanting to gain a foothold in the massive Indian market place.

We are committed to opening these markets, to breaking down barriers, and insisting on fairness in our trading relations.

And we believe our efforts will pay off.

Through changes in our tax code, and our approach to smarter regulations — along with a dedication to training the next generation of skilled workers — we have put in place the conditions needed to make the United States the best place in the world to produce goods and services.

We have experienced extremely positive economic results from these efforts, and we are proud of what we have accomplished so far.

We hope that you can take advantage of the opportunities in our growing economy, and that you will utilize the services offered by the Commerce Department to expand into foreign markets.

Thank you for taking the time out of your busy day to be here with us, and we at the Commerce Department look forward to serving your needs in any way possible.

2019 Global Entrepreneurship Summits

The Global Entrepreneurship Summit (GES) is the preeminent annual gathering that convenes entrepreneurs, investors, and their supporters globally. An estimated 20,000 emerging leaders have participated in Global Entrepreneurship Summits since 2010. At previous GES summits, governments and the private sector have committed to provide over $1 billion in new capital to entrepreneurs worldwide.

On November 15, 2018, the U.S. and the Netherlands officially launched the upcoming 2019 Global Entrepreneurship Summit, which is scheduled to be held in The Hague, Netherlands on June 4-5, 2019. As previously announced by President Donald J. Trump and Prime Minister Mark Rutte in July, the ninth annual GES will underscore the commitment by both countries to entrepreneurship and innovation. The launch kick-starts the “Road to GES” events, taking place in both the Netherlands and the United States.

The 2019 Global Entrepreneurship Summit will invite the world’s most inspiring entrepreneurs innovating in Agri/Food, Connectivity, Energy, Health, and Water five key investment areas.