With trade talks between the US and China running hot and cold, it is easy to get sucked into daily trade war updates with their unexpected tariff announcements.

In the bigger picture, the underlying uncertainty caused by the ongoing trade tensions is having a large impact, particularly on two-way foreign direct investment (FDI). So far this year, combined two-way US and Chinese FDI has totaled just $9.9 billion— its lowest six-month value in five years, according to research firm Rhodium Group. At its…

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