China is buying the world. Europe and US are scared of the Chinese money that is conquering tech companies and hotels. In 2016, Chinese foreign investment in the US has reached $51.09 bn, according to Mergermarket -a data analytics firm. Chinese have made 65 M&A deals in the US, raising their investment by 360%. In Donald Trump’s US, Chinese investment is not expected to come down in the coming years as well.
In 2015, Chinese investment in the US was just 11.5 bn.
One of the controversial investment by the Chinese that revealed the intention and nature of their investment was the acquisition of German robotic firm Kuka. After bunch of concerns from the Germany, and all across West, the acquisition was ratified by the German authorities.
On acquisition front, Europe criticize that China is not ready to allow foreign investment in their companies whereas it passionately buys others’.
China’s aggressive bidding of Western companies is now getting increasing resistance. In 2015, nearly 150 Republican and Democrats have written letters urging US authorities to stop strategic buyouts.
In 2016, the biggest Chinse acquisition in US was made by Anbang Insurance when it bought Strategic Hotels And Resorts for $6.5bn. HNA Tourism group acquired majority stake in another renowned hospitality firm – Hiltor Worldwide for $6.49 mn. Several other Chinese investments have raised level of asset acquisition as well as concerns from US administrators.
Tags : china and us economies