Global Business Alliance highlights international investment benefits for US economy and jobs

In a pivotal meeting of the U.S. House Committee on Financial Services, Jonathan Sanford, president and CEO of the Global Business Alliance (GBA), painted a vivid picture of the crucial role international investment plays in the American economy. As he addressed lawmakers, Sanford emphasized that the GBA represents around 200 prominent global brands that not only contribute significantly to the U.S. workforce but also strengthen economic ties with allied nations.

Sanford highlighted that international companies employ approximately 12,000 American workers each on average, collectively supporting over 8 million jobs across the nation. These companies have invested a staggering $5 trillion into the U.S. economy, paying their employees 7% more than the average in the private sector and driving 12% of all private sector research and development. Manufacturing, in particular, has seen a remarkable 29% growth in investment over the past five years, with states like Ohio benefiting significantly—over 320,000 jobs in the state are linked to global companies, half of which are in manufacturing.

However, Sanford's message extended beyond mere economic figures; he underscored the strategic importance of these investments. He noted that 75% of all foreign investment in the U.S. comes from just eight nations, reinforcing local supply chains and fostering innovation while aligning the interests of U.S. allies with those of America. In contrast, he pointed out that Chinese direct investment in the U.S. has dwindled to less than 1% and has decreased by 15% since the passage of the Foreign Investment Risk Review Modernization Act (FIRRMA) in 2018.

Sanford called for a balanced approach to investment security, urging Congress to ensure that the Committee on Foreign Investment in the United States (CFIUS) remains focused on genuine national security threats rather than expanding its scope into broader industrial trade policies. He warned that unpredictability in investment reviews could deter the very investments that are vital for job growth and manufacturing in the U.S.

The meeting concluded with a strong bipartisan commitment to maintaining an open investment environment while safeguarding national security, as evidenced by the recent unanimous passage of the Global Investment in American Jobs Act. As the dialogue continues, the balance between security and openness remains a critical focus for lawmakers and industry leaders alike.