The Stalled Investment Board
The US-China Board of Investment is unlikely to be a deliverable for the expected meeting next month between Donald Trump and Xi Jinping in Washington. Sean Stein, president of the US-China Business Council, explicitly stated that neither side has initiated the required consultation process. Furthermore, he noted that neither government currently appears ready for discussions with the private sector. The creation of this board was initially announced during the May summit as a new mechanism for managing bilateral business ties. Meanwhile, the Chinese embassy in Washington stated that economic teams continue maintaining close communication regarding these relevant mechanisms.
Differing Views and Plunging Investment
Experts attribute this significant delay to differing views within the US administration and Congress regarding the risks of Chinese foreign direct investment. Consequently, overall Chinese investment into the United States plummeted from $55 billion in 2016 to just $4 billion in 2025. While President Trump has welcomed potential opportunities for Chinese carmakers to build US plants, his administration actively took steps to keep them out over espionage and unfair competition concerns. Currently, both sides remain completely tight-lipped regarding the specific status of the investment board. Instead, officials are focusing much more heavily on delivering quick results through the separate Board of Trade.
Trade Board Progress and Diplomatic Talks
Negotiations on the Board of Trade have intensified as both sides race to finalize eligible non-sensitive sectors for tariff-free trade. Recently, the Chinese embassy confirmed that agriculture and aviation are among the sectors selected for reciprocal tariff reductions. Despite this limited progress, analysts stress that overall bilateral engagement before the September meeting remains much less intense than during previous administrations. Nevertheless, US Treasury Secretary Scott Bessent and Secretary of State Marco Rubio recently held high-level discussions with their Chinese counterparts. During these talks, they actively worked to operationalize these newly established boards ahead of the upcoming presidential summit.
Reference
Seth, N., & Seth, N. (2026c, agosto 13). Exclusive | US-China ‘Board of Investment’ stalls before expected Trump-Xi meeting. South China Morning Post. https://www.scmp.com/news/us/economy-trade-business/article/3363829/us-china-board-investment-stalls-expected-trump-xi-meeting?share=DB%2FTsW1F7z4tfkeKGoG5xkSYG2a6HegfhkcSTfllcjZeRq31zRIHWKReuJCbjev9UcWD9K43Yc72n5q%2FlNk9mbADflHVZhY9BR0meu5RuAE%3D&utm_campaign=social_share