Skip to content

Chinese Private Sector’s Investments in the U.S. Skyrocketed

Well-known Chinese news site Sina recently reported that new research found that Chinese companies invested around US$29 billion in the U.S. in the first half of this year. This is more than the full-year-investment record set in 2014. Companies in the Chinese private sector made over half of the investments. This round of investments has one unique characteristic; nearly all of the money ended up in acquisitions and mergers instead of new establishments. There were quite a few high profile deals in this round such as Haier acquiring GE Appliances with US$5.4 billion. Analysts expressed the belief that the attractiveness of the U.S. comes from its diversified investment opportunities as well as the stability of the U.S. Dollar. The U.S. Committee on Foreign Investment in the United States (CFIUS) is expected to say no to more applications than it did previously. However, no one seems to be really worried.
Source: Sina, July 16, 2016