US investment in China

Despite the ongoing trade war, the US investment in China is rising. According to the Rhodium Group (from FT), US companies invested $6.8 billion in China in the first half of the year, this is a 1.5 per cent increase from the average over the last two years’ same periods. These companies include some famous names, such as Tesla, Bain Capital. What does this mean?
First, these companies still want to enter the enormous Chinese market. Tesla may be a great example of this. Tesla sees itself as a very competitive EV company and it sees a great potential in the Chinese market. By investing in China, it hopes to expand its market share in China to significantly increase its revenue and profit. Although there is a risk in the Chinese economy, some companies see more opportunities in the Chinese market and the downside risk actually makes it a great time to enter the market. Moreover, some US investors believe the Chinese capital market is overreacting to the risk caused by the trade tension. This is very likely because not all sectors are affected by the trade tension equally; when the market is panic, overreaction is a very likely phenomenon in the market.
Overall, we can see that although the risk is obvious due to the ongoing trade war between the US and China, the Chinese market still has its potentials that no one can omit.