Guangming Daily published an article on Chinese companies’ overseas acquisitions, including a recent one on March 30 in which Midea spent US$473 million to acquire an 80.1 percent share of the stock in Toshiba. Also, on January 15, GE sold its appliance business to China Haier for US$5.4 billion.
The article stated that the move is part of the effort that the Chinese manufacturing companies are making in order to gain a competitive advantage in the world’s market. The article quoted a statement that a Chinese businessman made, saying that China’s overseas acquisitions grew 40 percent in 2015. According to the article, in today’s world, China lags behind in technology and brand recognition. China wishes to improve its competitive advantage and increase its overseas market share through mergers and acquisitions. The article stated, “In order for China to enter the world market, China is required to increase communication and cooperation with other companies.”
According to statistics that the Ministry of Commerce released, among the overseas investments that Chinese companies made in 2014, manufacturing ranked 5th, following leases and commercial services, the financial industry, coal mining, retail, and distribution.
Source: Guangming Daily, April 1, 2016