Chinese investment in US ‘doubled in 2013’

China’s investment in the United States doubled to $14 billion last year despite sometimes rocky political ties, with private firms leading the way, said a study.

上海按摩服务

About half of the value consisted of Shuanghui International’s takeover of pork producer Smithfield Foods, a $7.1 billion deal that marked the largest Chinese acquisition of a US company to date.

But the report by the Rhodium Group, a New York-based firm that scrutinises Chinese investment, found that Chinese companies accounted for 70,000 full-time jobs in the US.

The total value of investment hit a record high of $14b, with high-profile deals in real estate as well as Chinese investments in the General Motors Building and Chase Manhattan Plaza in New York.

Private firms and entrepreneurs dominated, accounting for 87 per cent of transactions and 76 per cent of the total value of Chinese investment, a contrast to the dominance of state firms until recently, the study said.

US politicians have raised concern about investments by several Chinese firms. Telecoms giant Huawei has largely dropped hopes of expansion in the world’s largest economy after Congress said that its equipment could be used for spying.

The US has also raised intellectual property as a concern with China, accusing hackers in the emerging economy of waging a vast theft campaign of American companies’ trade secrets.

But the Rhodium Group said that most deals that failed were not linked to politics. It predicted future growth in investment.

“With its large market, educated workforce and world-leading technology and brands, the United States has strong appeal to the next generation of Chinese outbound investors,” it said.

Comments are closed.