Chinese Invest Record $38b in Europe, US Last Year
World Economy

Chinese Invest Record $38b in Europe, US Last Year

Chinese investors poured a record $23 billion in Europe and $15 billion into the United States last year, with investments concentrated in the real estate, automobile, finance and IT sector, according to a report released by global law firm Baker & McKenzie.
The report said Chinese investors picked Italy, France, and the United Kingdom as the top three investment destinations in Europe last year, Asia First reported.
The US states of New York, California, and Texas also received the most investments from China last year. Chinese investments in Europe and the United States hit a record high last year despite a number of trade issues involving Chinese traders in those regions.
According to the law firm, Chinese investors managed to get into the high-tech and high-end manufacturing sectors in Europe and the US by acquiring well-known firms. The report also said that Chinese investors are particularly interested in investing in housing and infrastructure in their search for long-term returns as the economic slowdown in China continues.
However, the figures suggest that the pace of Chinese investment in western economies may be slowing.
New investment in Europe was up 28% on the $18 billion registered in 2014, a smaller increase than 2014’s doubling of the 2013 figure. Investment in the US was up 17% compared to 2014’s level of $12.8 billion.
Concerns about China’s economy have dragged down global financial markets, affecting prospects for the eurozone and many others. Such worries are one reason why the European Central Bank was expected on Thursday to unleash a new round of economic stimulus.
Meanwhile, figures such as Wang Jianlin, China’s richest man, have raised concerns about Chinese state-owned enterprises’ investments in Europe, arguing that they lack international management standards.
But Michael DeFranco, chair of Baker & McKenzie’s M&A practice, hailed the Chinese group’s investment in developed economies.
“These are turbulent economic times and yet we see Chinese companies acting with confidence and continuing to make major moves in Europe and North America,” he said.

  Back on Track
Chinese investment in western economies is back on track to break the record again in 2016: during the first six weeks this year Chinese groups announced $70 billion in potential deals, although the number is highly provisional and not all such acquisitions will be completed.
Chinese direct investment in the eurozone was up 37% in 2015, rising to $17.1 billion from $12.5 billion.
Italy, one of the eurozone’s weaker economies, received the most investment of any EU nation from Chinese companies. That was largely down to a $7.9 billion deal between Pirelli and ChemChina. France was the number two country, receiving $3.6 billion of investment through a string of big deals in the tourism and infrastructure sectors.
In the US, New York, California and Texas received the most investment. Chinese companies invested $5.4 billion in New York, the top beneficiary, with most of the money spent on three big financial services and property deals.


Short URL : http://goo.gl/A9T7aA
  1. http://goo.gl/9HgiRm
  • http://goo.gl/nHHOA3
  • http://goo.gl/pcYN3P
  • http://goo.gl/tiVRnr
  • http://goo.gl/UBreMl

You can also read ...

Even though the US tariffs on their own may have a limited impact, global economic growth will slow should US trigger a trade war with  China or the European Union.
The volume of global trade grew faster than the world economy...
Since China’s entry into the World Trade Organization in 2001, it has become the most formidable  economic competitor the United States had even seen.
The US national debt exceeded $21 trillion for the first time...
S. Arabia Among World’s Worst Performing Property Markets
Saudi Arabia’s real estate market continued to be one of the...
OECD Finds No Consensus on Interim E-Commerce Taxes
The Organization for Economic Cooperation and Development’s...
Merkel Says Trying to Boost Domestic Demand
Germany is trying to stimulate domestic demand to offset...
Greece Looking Economically Vibrant on Road to Recovery
It’s nearly springtime in Athens: street trees are heavy with...
Gaza growth fell from 8% in 2016  to a mere 0.5% in 2017.
Gaza has seen conditions steadily deteriorate over the last...
2 Japan Airlines Plan Merger
Japanese airline group ANA Holdings has decided to consolidate...