The most recent data from CFIUS concerning Chinese investment in the U.S. discloses the following:
- China had the most “covered transactions” (mergers and direct investments) for the latest data period (2014) that is reported by CFIUS in its new annual report released in 2016 — greater than the U.K., Canada, Germany, Netherlands or Japan.
- 1/4th of all completed Chinese transactions were mergers and other acquisitions
- There were twice as many completed transactions in 2004 than the prior year.
Simply put this data continues the narrative that Chines investment into the US. is huge and growing. This is continuing in 2016 with massive new investments as part of China’s outward investment strategy. Chinese corporations want to diversify away from domestic investment in a slowing China. This can be seen by such investments into U.S. real estate including hotel chains and its corporations.
I conclude from the above data that such investment, even if reviewed for national security implications, are extremely important for continuing merger deals and health of the U.S. economy. This despite the fact that there is growing popular resentment of such deals and investments. Not unlike the earlier period of Japanese investment into the U.S.
The national security reviews or the threat of them have not slowed the investment and commercial drivers of such investment. My take is that this is good for the U.S. economy and economic development in the U.S. generally. It provides new capital and new global markets for U.S. firms.
“Chinese Hotel Buying Spree.“ New York Times (March 15, 2016).