GBA Highlights Importance of Global Investment in US Economic Strength

The U.S. House Committee on Financial Services recently highlighted the critical role of international investment in bolstering the American economy during a meeting focused on U.S. Policy on Investment Security. The discussions underscored that international companies, which are major employers in the U.S., contribute significantly to job creation and economic growth.

The Global Business Alliance (GBA) emphasized that its members, representing around 200 prominent international brands, employ approximately 12,000 American workers each on average. Collectively, these companies provide jobs for over 8 million Americans, showcasing their commitment to investing in the U.S. economy. Notably, international firms have invested more than $5 trillion in the United States, paying their employees 7% more than the average private sector wage and driving 12% of all private sector research and development.

Manufacturing emerged as the leading sector for foreign investment, experiencing a remarkable 29% growth over the past five years. In Ohio, for instance, over 320,000 residents are employed by global companies, with half of those jobs in manufacturing. This investment not only strengthens the economy but also serves as a strategic advantage, as 75% of all foreign investment in the U.S. comes from just eight nations, fostering local supply chains and innovation.

The meeting also addressed the decline of Chinese direct investment in the U.S., which now accounts for less than 1% of total foreign investment, a drop of about 15% since the passage of the Foreign Investment Risk Review Modernization Act (FIRRMA). This shift highlights the bipartisan commitment to maintaining an open investment environment, a priority reaffirmed by every U.S. president over the past 50 years.

As the U.S. continues to navigate its investment policies, the emphasis on international partnerships and economic collaboration remains crucial for sustaining growth and enhancing national security. The discussions from this meeting signal a clear path forward in leveraging global investment to strengthen the American workforce and economy.