Dubai Deal's Collapse Prompts Fears Abroad on Trade With U.S.

Dubai Deal's Collapse Prompts Fears Abroad on Trade With U.S. - New York Times: "while protectionist sentiment in Congress is never far from the surface, so far it has done little to damage the intricate web of cross-border business deals that are going on just about every day. Last summer, animosity against the effort by a state-owned Chinese oil company to buy the American oil company Unocal helped force China to retreat. But there has been no letup in investment flows into the United States in its wake.

Foreign companies plowed $38.8 billion worth of direct investment into the United States in the third quarter of last year, according to government statistics, more than two and a half times the amount recorded in the second quarter and roughly 9 percent more than in the period in 2004.

Foreign investment in American financial markets is even stronger. Last year, capital flows into Treasury bonds, equities in American companies and other securities totaled more than $1 trillion, 14 percent more than in 2004. Much of it came from China and the Middle East."