Investment in the United States by companies from Japan, South Korea and Taiwan is expected to continue growing, Citi’s international chief Ernesto Torres Cantu told Reuters, citing companies’ capacity to invest and a global reshaping of supply chains.
Cantu said spending on US projects tends to build over time, as companies move from acquiring land to constructing factories and beginning operations. He also pointed to double-digit growth in inbound business into North America.
The comments come as Citi and JPMorgan finance Japanese projects linked to Tokyo’s $550 billion US investment pledge. The White House has also announced the initial tranche of South Korea’s $350 billion strategic package.
Cantu said multinational companies have been adapting quickly to geopolitical shocks. Tariffs remain a consideration, he said, but the Gulf War may be having a greater effect, prompting businesses to reconsider trade routes and supply chains.
Citi’s services business, which provides cash management, payments, trade finance and liquidity, recorded a 15% revenue increase in the third quarter, compared with an 8% rise in the bank’s overall revenue.
Cantu also expects cross-border business involving Asia to expand, with China and India among the key centres. He said trade between Britain and India was growing significantly after tariff cuts, and expected the European Union’s free trade agreement with India, due to take effect in 2027, to create further business opportunities.
Flows from China to the rest of the world have grown by more than 20% annually over the past two years, Cantu said. Citi plans to use its corporate banking client base to pursue more onshore securities business in China after receiving approval to establish a wholly owned securities unit.
Sources: Investing.com News.