Why does Citi expect South Korean, Taiwanese and Japanese companies to keep investing in the United States?

Citi international chief Ernesto Torres Cantu linked the expected growth to a global supply-chain shake-up and said companies have substantial capacity to invest. He described spending as building over time through successive stages, from land purchases and factory construction to daily operations.

Which Asia-related trade corridors does Citi expect to grow, and what is driving them?

Cantu identified China-to-rest-of-world and India-related corridors as among the most active. He said Britain-India trade 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 business opportunities.

How does Citi plan to expand its securities business in China?

Citi plans to use its large corporate banking client base to seek more onshore securities business serving local and international companies. Cantu said the bank had recently won approval to establish a wholly owned securities unit in China.

Japanese, Korean, Taiwanese firms' US investment set to keep climbing: Citi

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Summary

Investments by South Korean, Taiwanese and Japanese companies in the United States are likely to keep rising amid a global supply-chain shake-up, Ernesto Torres Cantu, Citi’s international chief, said in Hong Kong. He said spending builds in stages, from buying land and constructing factories to daily operations. Cantu also cited changing trade flows and supply chains, while expecting cross-border business involving China and India to grow. Citi’s services revenue rose 15% in the third quarter.

Key Facts

Citi and JPMorgan are financing Japanese projects tied to Tokyo’s $550 billion U.S. investment pledge.
The White House recently unveiled the initial tranche of Seoul’s $350 billion strategic package.
Citi’s overall revenue increased 8% in the third quarter, while its services business provides cash management, payments, trade finance and liquidity.
Cantu said flows from China to the rest of the world had expanded by more than 20% a year for the past two years.
Citi recently won approval to establish a wholly owned securities unit in China and plans to draw on its corporate banking client base to pursue onshore securities business.

By Reuters

Published Nov 3, 2026 3:08 pm KST

Logo of Citi Bank is seen in this illustration. Reuters-Yonhap

HONG KONG — Investments by some companies from Asian economies in the United States are set to keep climbing amid a global supply-chain shake-up, Citi's international chief said, with spending expected to build in stages.

"These companies have a lot of capacity to invest. I think that investments from the South Koreans, Taiwanese, and Japanese firms is likely to continue," said Ernesto Torres Cantu, who heads Citi's global business outside of North America, across more than 180 countries and jurisdictions.

There is a lot of investment from global companies into the United States, with "double-digit growth in the inbound business into North America", Cantu told Reuters in Hong Kong.

Citi and JPMorgan are financing Japanese projects tied to Tokyo's $550 billion U.S. investment pledge, while the White House recently unveiled the initial tranche of Seoul's $350 billion strategic package.

Investments in U.S.-bound projects tend to compound over time, Cantu said, comparing a company's capital expenditure to a multi-stage manufacturing ramp-up, from buying land to building a factory and running daily operations.

"So, it just keeps going up."

Large multinationals are showing resiliency amid geopolitical shocks, and are "adjusting exceptionally fast", Cantu said.

While tariffs remain a factor, he said the Gulf War may be having a bigger impact, which is forcing many companies to rework their trade flows and supply chains.

That requires the bank to keep executing payments, trade finance and transaction settlements for clients across changing market environments, he noted.

While Citi's overall revenue rose by 8% in the third quarter of this year, its services business, which provides cash management, payments, trade finance as well as liquidity to corporations, financial institutions, and governments outperformed with a 15% increase in revenue.

Cantu also expects flows through other cross-border corridors involving Asia to keep rising, with China and India at the centre of two of the most active ones.

Trade between Britain and India is "growing significantly" after the tariff cuts, he said. Cantu expects the European Union's free trade agreement with India, which takes effect in 2027, to bring "a lot of business opportunities" too.

"We see business expansion from China to the rest of the world continuing to grow," he said, adding that flows from China to the rest of the world have expanded "significantly," by more than 20% a year for the past two years.

In China, Citi, which recently won approval to set up a wholly owned securities unit, plans to draw on its large corporate banking client base as it seeks more of the onshore securities business serving both local and international companies, according to Cantu.

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