The investments by South Korean, Taiwanese, and Japanese firms in the US are likely to pick up gradually as the world’s supply chain reconfigures, a senior Citi executive told Reuters.
Ernesto Torres Cantu, head of international business for Citi outside North America, said companies the idea of these Asian economies to make investments in the US itself means the pattern of greater inflows of capital is likely to continue.
The inbound business into North America is seeing double-digit growth, and this is reflecting a growing amount of investment activity by multinational businesses that want to grow their presence in the US, Cantu told Reuters in Hong Kong.
It is well to be noted that Citi and JPMorgan are two of the banks financing the Japanese projects involving Tokyo’s $550bn investment pledge to the US. Meanwhile, South Korea’s $350 billion strategic investing package saw its first tranche announced by the White House recently.
Typically, as companies traverse different phases of growth, from buying land and building factories to establishing manufacturing facilities and managing routine tasks, capital invested in US-bound projects goes up, Cantu said. He added that this gradual process will keep investment flows going for a long time.
Cantu said that large multinationals have proven to be resilient to geopolitical delays and are adjusting swiftly to altering business conditions.
Tariffs are still a big factor, but Cantu stated that the Gulf War may be a bigger factor in business choices, forcing companies to review conventional trade routes and retool supply chains.
As Asian economies to make investments in the US, such sort of developments are making banking services like payments and trade finance, as well as transaction settlements, more essential as businesses deal with evolving global trade environments.
Revenues when it comes to Citi’s services business, which serves corporations, financial institutions, and governing bodies with cash management, payments, trade finance, and cash flow services, surged 15% in the third quarter of 2026.
The figure was compared to an 8% rise in the total revenue of the bank and demonstrated the viability of its transaction banking business.
Cantu also sees cross-border business flows with Asian economies continuing to increase, with China and India becoming key activity centers.
Trade between Britain and India has increased enormously as a consequence of the lowering of tariffs. He is also of the opinion that the free trade deal between the European Union and India, which is set to take effect in 2027, will provide huge business opportunities.
Meanwhile, the momentum of business growth from China to overseas markets is projected to continue. Cross-border trade flows from China to the majority of the world have risen by over 20% a year in the past two years.
Citi will take advantage of its large corporate banking client base in China to further develop its footprint in the domestic securities market, assisting local and global companies.
The bank just got the go-ahead to set up a wholly owned securities unit in the country. This would enable Citi to tap into a larger portion of the onshore securities business in China by leveraging its current relationships with corporate clients, said Cantu.