China Inc. Comes To America
Japan led a wave of investment into America in the 1980s. Now it’s China’s turn.
A new report described as the first of its kind has broken down how much Chinese money is flowing into America, where it’s going and its economic impact.
Chinese investors are already the biggest holders of U.S. government debt and are known for snapping up trophy assets like the Waldorf Astoria Hotel. The new analysis by the National Committee on U.S.-China Relations and Rhodium Group has found that Chinese companies and investors are putting money into everything from American copper plants and factories to real estate, across the country.
Between 2000 and 2014, Chinese firms spent almost $46 billion on acquisitions and new establishments across America, much of it in the past five years alone. By the end of last year there were 1,583 establishments by Chinese firms across the U.S., according to the report.
Still, Chinese FDI is only at the initial stage that Japanese firms reached in the 1980s and is tipped for further growth. The U.S. could receive between $100 billion and $200 billion of investment by 2020, creating between 200,000 and 400,000 jobs, the report found.
Headlines on Chinese and U.S. relations are usually dominated by tensions over trade and security as China flexes its economic muscle on the world stage. Corporate takeovers in the U.S. by foreign companies can be controversial as locals fear losing their jobs. But the report found that Chinese investment is saving jobs by offering new financing to troubled busnesses.