In the center of the horizon of Los Angeles, California.
Frederick J. Brown AFP |
Chinese homebuyers last year made much less money in the US as the trade war continued to grow between the two largest economies in the world
Both President Donald Trump and President Jin Geing are preparing to meet this week, are concerned that spending cuts could be further widened.
US property sales for Chinese buyers fell by 4% from 201
US properties have fought with international investors as a whole: all foreign housing spending in the US fell by 25% in 2018, according to Juwai.com Homes have long been favored among Chinese foreign buyers. But this is less and less certain in terms of the escalating tensions in trade and the tighter control of China on money leaving the country.
Since the war between Washington and Beijing has been going on for a little over a year, "Chinese property buyers' inquiries in the US have fallen in four of the last five quarters," said the executive director of Juwai.com Kari Lo
"In the first quarter (since 2019), US buyers' property queries have fallen 27.5 percent year-over-year," she said. "At the same time, they were in Canada, Britain, Australia and Japan, all of which are often considered as alternative destinations for the United States."
But the trade war is not the only factor that leads to a downturn. Official travel warnings in the US and China are also likely to put pressure on costs.
"Travel warnings are part of the general environment of negativity between the two countries that discourages buyers of Chinese property from investing in the United States."
The US flag flew to the rendezvous ceremony between Chinese President Cing Dingping and US President Donald Trump in 2017
Getty Images News | In January 2019, the US State Department issued a warning for China's travel, which suggests that citizens visiting China "should exercise increased caution in China due to the arbitrary application of local laws, as well as special restrictions on double US and Chinese citizens . "China then reacted by issuing a safety alert in June for Chinese citizens and companies in the United States to" raise awareness, step up preventive measures, and react properly "when traveling and doing th business in the United States.
turning the United States into a less attractive destination for Chinese investment.
"We call it the Effect of Trump, a combination of anti-Chinese political rhetoric, restricting visa processing and, of course, tariffs," said the law
. "Trump's effect is undermining some of the main driving forces of Chinese property demand in the US" and damaging "the reputation of the country as a secure investment," she added.
Some experts said the decline in Chinese property purchases in the US could also be due to domestic pressure in China.
Neil Brooks, capital of Knight Frank of the Asia Pacific region, told CNBC last week that Chinese outflows fell 83% over 12 months, largely due to trade wars, and the government is trying to stop money to leave the country.
For the past two years, China has tightened its leakage power, which "casts a shadow on outgoing investment," according to a report by Knight Frank.
The introduction of tighter controls is partly due to Beijing's concern about the declining foreign exchange reserves the Chinese government is using to maintain the yuan. The government has said that the crackdown on capital crossing its borders is also part of an attempt to stop the graft.
StudioEAST | Since then, foreign ownership of the home has been "classified as a sensitive sector," according to Knight Frank's wealth report 2019. t In other words, investments in "overseas property markets require strict official approval" and can attract unwanted attention.
Despite the decline in property costs, Chinese travel costs actually increased in the US
to the US National Travel and Tourism Service, there was a drop in Chinese visitors in 2018 from 3.2 million to 2 , 9 million. But those who have visited the country have spent more than ever.
In fact, international visitors from China spent $ 36.4 billion in the United States in 2018, an increase of 3% compared to the previous record set in 2017.
The health of US-Chinese tourism trade can show a significant pillow for Chinese investment in the United States. And looking ahead, the law said it expects buying American homes will remain attractive to many Chinese. "Chinese will always be significant US buyers and even now are probably still the largest group of foreign buyers in the country," she said.
"What makes the most nervous buyers is uncertainty," the law says. "If the trade war just becomes the new norm, or if allowed in good conditions, you will likely see an increase in Chinese purchases in the US. ] Investors will get their next indication of the future of the trade war when Trump and C will meet later this week at a G20 summit in Japan.The US president said he would soon determine potential new tariffs  – CNBC's Huileng Tan contributed to this report e.