Given the recent volume of deals, it would appear that the Chinese government is supportive of the foreign-buying spree.
Portia Crowe reports: Here’s a story you’ll be hearing about a lot this year.
Chinese companies have been buying up foreign businesses, including American ones, at a record rate, and it’s freaking
There is General Electric’s sale of its appliance business to Qingdao-based Haier, Zoomlion’s bid for the heavy-lifting-equipment maker Terex Corp., and ChemChina’s record-breaking deal for the Swiss seeds and pesticides group Syngenta, valued at $48 billion.
Most recently, a unit of the Chinese conglomerate HNA Group said it would buy the technology distributor Ingram Micro for $6 billion.
And the most contentious deal so far might be the Chinese-led investor group Chongqing Casin Enterprise’s bid for the Chicago Stock Exchange.
A deal spree
To date, there have been 102 Chinese outbound mergers-and-acquisitions deals announced this year, amounting to $81.6 billion in value, according to Dealogic. That’s up from 72 deals worth $11 billion in the same period last year.
And they’re not expected to let up anytime soon. Slow economic growth in China and cheap prices abroad due to the stock market’s recent sell-off suggest the opposite.
“With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth,” Vikas Seth, head of emerging markets in the investment-banking and capital-markets department at Credit Suisse, told Business Insider earlier this month.
China’s economic growth in 2015 was its slowest in 25 years.
The law firm O’Melveny & Myers recently surveyed their mainly China-based clients and found that the economic growth potential in the US was the main factor making it an attractive investment destination.
Nearly half of respondents agreed that the US was the most attractive market for investment, but 47% felt that US laws and regulations were a major barrier. They’d be right about that.
A major barrier
Forty-five members of Congress this week signed a letter to the Treasury Department’s Committee on Foreign Investment in the US, or CFIUS, urging it to conduct a “full and rigorous investigation” of the Chicago Stock Exchange acquisition.
“This proposed acquisition would be the first time a Chinese-owned, possibly state-influenced, firm maintained direct access into the $22 trillion US equity marketplace,” the letter reads. Read the rest of this entry »
China’s female guards of honor made their overseas debut Saturday on a military music festival staged in Moscow to celebrate the 868 years’ anniversary of the founding of the city.
A cold rain lasted throughout the parade, however, it didn’t dampen the troop’s morale as Moscow residents watched the Chinese girls in poncho striding along the historic Tverskaya Street, one of Moscow’s most visited areas.
Earlier on Friday, they attended a festival rehearsal on the Red Square. Pictures of the female soldiers’ formation soon drew many praising remarks on China’s Twitter-like Sina Weibo.
“Their bright and valiant look represents Chinese people’s heroic spirit, unity and perseverance,”@5372170258.
“Salute to China’s female soldiers,”@TOMYyuleifengtongxing.
“Our female soldiers are awesome,”@baiduanrouchang.
“The frequent exchanges between China and Russia show their close friendship,”@kexuejiahuojianzhushi.
BEIJING (AP) — People recently punished in China’s campaign against online rumors include those who circulated an inflated death toll in the Tianjin blasts and who alleged a man committed suicide because of the country’s stock market woes, state media reported Monday.
“Among the rumors circulated were that a ‘man jumped to his death in Beijing due to the stock market slump,’ and that ‘at least 1,300 people were killed in the Tianjin blasts.’ The death toll in the Aug. 12 explosions at warehouses for hazardous chemicals in the port city so far is 150.”
In an Effort to Appear Relevant, Obama Administration Finally Sort of Developing Sanctions Against China Over CybertheftsPosted: August 30, 2015
A decision on whether to act could come soon, close to a major state visit by President Xi Jinping.
The Obama administration is developing a package of unprecedented economic sanctions against Chinese companies and individuals who have benefited from their government’s cybertheft of valuable U.S. trade secrets.
The U.S. government has not yet decided whether to issue these sanctions, but a final call is expected soon — perhaps even within the next two weeks, according to several administration officials, who spoke on the condition of anonymity to discuss internal deliberations.
“The indictments were a strong move. This is going to be an even stronger move. It’s really going to put China in the position of having to choose whether they want to be this pariah nation — this kleptocracy — or whether they want to be one of the leading nations in the world.”
— Rob Knake, a former White House cyber official and currently a senior fellow at the Council on Foreign Relations.
Issuing sanctions would represent a significant expansion in the administration’s public response to the rising wave of cyber-economic espionage initiated by Chinese hackers, who officials say have stolen everything from nuclear power plant designs to search engine source code to confidential negotiating positions of energy companies.
Any action would also come at a particularly sensitive moment between the world’s two biggest economies. President Xi Jinping of China is due to arrive next month in Washington for his first state visit — complete with a 21-gun salute on the South Lawn of the White House and an elaborate State Dinner. There is already tension over a host of other issues, including maritime skirmishes in the South China Sea and China’s efforts to devalue its currency in the face of its recent stock market plunge. At the same time, the two countries have deep trade ties and the administration has sometimes been wary of seeming too tough on China.
But the possibility of sanctions so close to Xi’s visit indicates how frustrated U.S. officials have become over the persistent cyber plundering.
The sanctions would mark the first use of an order signed by President Obama in April establishing the authority to freeze financial and property assets of, and bar commercial transactions with, individuals and entities overseas who engage in destructive attacks or commercial espionage in cyberspace.
“China is not the only country that hacks computer networks for trade secrets to aid its economy, but it is by far the most active, officials say. Just last month, the FBI said that economic espionage cases surged 53 percent in the past year, and that China accounted for most of that.”
The White House declined to comment on specific sanctions, but a senior administration official, speaking generally, said: “As the president said when signing the executive order enabling the use of economic sanctions against malicious cyber actors, the administration is pursuing a comprehensive strategy to confront such actors. Read the rest of this entry »
TIANJIN — A massive explosion late Wednesday shook the northern Chinese city of Tianjin, startling nearby residents with tremors and noise, but it was not known immediately if there were any casualties, according to state media.
The explosion in Tianjin erupted at a container port where flammable material was being stored in containers, reported CCTV, China’s state-owned broadcaster.
— People's Daily,China (@PDChina) August 12, 2015
The Chinese broadcaster said it was unable to confirm the number of those injured or whether any people had been killed. Read the rest of this entry »
CCTV last week quoted a former Dumex sales manager alleging the company had bribed hospital staff in the city of Tianjin to feed its milk powder to newborn babies.
But the television channel yesterday expanded its claims, saying Dumex had paid out nearly 500,000 yuan in bribes in April alone to doctors and nurses in Beijing and five northern provinces – Heilongjiang , Hebei , Liaoning , Jilin , and Inner Mongolia – as well as Tianjin. Read the rest of this entry »
TIANJIN, China | Li Hui and Megha Rajagopalan write: (Reuters) – In a modern office building on the outskirts of the Chinese city of Tianjin, rows of censors stare at computer screens. Their mission: delete any post on Sina Weibo, China’s version of Twitter, deemed offensive or politically unacceptable.
But the people behind the censorship of China’s most popular microblogging site are not ageing Communist Party apparatchiks. Instead, they are new college graduates. Ambivalent about deleting posts, they grumble loudly about the workload and pay.
Managing the Internet is a major challenge for China. The ruling Communist Party sees censorship as key to maintaining its grip on power – indeed, new measures unveiled on Monday threaten jail time for spreading rumours online. Read the rest of this entry »