WASHINGTON, D.C. – Today, the Global Business Alliance (GBA) released The Power of Global Investment in America amid an increasing amount of rhetorical angst coming from politicians over globalization.
“It is imperative we silence the false “Us versus Them” narrative that threatens to impact America’s global competitiveness,” said Nancy McLernon, GBA’s president and CEO. “The Americans that work for international companies have a good news story to tell. These companies have created nearly 8 million high-quality, good-paying jobs for Americans and invest in their local communities across the country in remarkable ways.”
The new report highlights the positive impact international companies have on America’s economy. These firms directly employ eight million Americans, including 23 percent of all U.S. manufacturing workers. American workers at these companies earn nearly $87,000 a year, that’s seven percent higher wages than the economy-wide average. And, over the past five years, international companies have created more than a quarter-million new manufacturing jobs in the United States, compared to overall U.S. manufacturing jobs, which remained flat during the same time.
“While it may be convenient to disregard international companies due to the rising concerns surrounding China, the reality is that Chinese investment in the U.S. is less than one percent of all global investment here and has been falling,” said McLernon. “Truth is, global investment presents America with the opportunity for economic strength, new jobs and stronger strategic ties with our allied partners. It is time that those in Washington understood the potency of global investment and enacted policies that reflect that.”
Some key findings from the report:
- International companies employ nearly 8 million American workers.
- Cumulative FDIUS reached $5.25 trillion by the end of 2022, a 33 percent increase since 2017.
- Eight allied countries comprise nearly 75 percent of FDIUS: Japan, Canada, the UK, Germany, France, Ireland, Switzerland and the Netherlands.
- Chinese investment in the U.S. has been on the downswing for years. Over the last five years, it dropped 29 percent or by $18 billion to $45 billion. That is less than one percent of all cumulative FDIUS.
GBA’s The Power of Global Investment Report is built on data released by the U.S. Bureau of Economic Analysis.