Chinese Investment in the USA –The United States has been benefiting from Chinese investment. The country continues to enjoy the increasing Chinese investment among other countries where Chinese invest in the world. For the past decade, Chinese have been investing majorly in commercial and residential property. Though Chinese investment in the United States is facing a decline, yet there are those that are still investing heavily in the country. Therefore, this article is about Top Chinese Investment in the USA.
TOP 5 CHINESE INVESTMENT IN USA 2020- INVESTMENT INFORMATION OVER YEARS
Chinese companies are leaving no stone unturned to be popular and have a global presence. The United State has enjoyed a large chunk of Chinese investment. Below is a highlight of the top 5 Chinese Investment in the USA.
- Anbang Insurance
- HNA Tourism Group
- Tianjin Tianhai
- Qingdao Haier Co.
- Dalian Wanda Group
- #1. Anbang Insurance’s
- Investment: $6.5 Billion Deal for Strategic Hotels and Resorts
Anbang is a large insurance group in China that completed most of its $6.5 Billion acquisition of Strategic Hotels & Resorts. The transaction comprises 15 properties including a JW Marriot Essex House in New York and the Four Seasons in Washington. The acquisition of Strategic Hotel and Resort is the second largest United States acquisition by a Chinese buyer after Shuangui International bought Smithfield Foods at $7 billion in 2013. Two years after the purchase of Strategic Hotels & Resorts, the organization bought the famed Waldorf Astoria Hotel in New York for $1.9billion upon its first entry into the U.S. market. Later in the same year, Anbang made an unexpected bid of $12.9 billion to buy Starwood before Starwood agreement to sell to Marriott. Anbang started a bidding war which caused the price to skyrocket to $14 billion.
- #2. HNA Tourism Group
- Investment: $6.49 Billion Deal for Hilton Worldwide
HNA Tourism Group was enlisted on this list because of its bid to expand their global tourism business, HNA agreed to pay $6.49 Billion to a private equity firm Blackstone Group for a 25% stake in Hilton Worldwide Holdings Inc., signage outside the company’s Millenium hotel in New York.
The Chinese hotel markets are one of the fastest growing in the world while outbound tourism is also growing quickly. The deal enables both organizations to expand their businesses in China’s fast-growing tourism market both in China and outbound in other countries.
HNA was established originally as a regional airline in 1993 which today has grown to be one of China’s largest tourism companies with almost 2,000 hotels. In addition to tourism, HNA also has interests in logistics and financial services due to their service and business network. HNA Tourism group controls 550 aircraft, 13 airports, and about 60 ships.
- #2. Tianjin Tianhai
- Investment: Ingram Micro for $6.07 Billion
Third, on our list is the take over a deal of Tianjin Tianhai company over Ingram Micro. This is classed as one of the top Chinese Investment in the USA because the deal marked the largest Chinese takeover of a U.S. information technology company. Irvine, a California-based Ingram Micro is the company taken over by the Chinese company which is an affiliate of HNA Group, a Chinese conglomerate with interests in shipping, logistics, and tourism. The deal was announced in February and was sealed in December after meeting the thorough regulations of both the U.S. and China.
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- #3. Qingdao Haier Co.
- Investment: $5.6 Billion on GE Appliance Business
Qingdao Haier Co. investment in GE Appliances is considered the fourth largest Chinese Investment in the United States. The agreement was reached in June, and the appliance division of General Electric officially became a part of Haier. This investment aided the expansion of the Chinese appliance manufacturer as well as an opportunity to boost its presence in the U.S. market. According to Haier, the electronic company, despite a change in ownership, the company will continue to use the GE Appliances brand. Also, the company would still be based in its current location in Louisville, Kentucky and operated independently under the direction of the current managerial team. To oversee the affair of the organization is the board of directors comprising of representatives from Qinghai Haier and GE Appliances as well as independent directors, would guide strategy and operations.
- #4. Dalian Wanda Group
- Investment: Legendary Entertainment for $3.5 Billion
Last on our list of Chinese investment in the USA is the acquisition of Hollywood Production Company, Legendary entertainment by Dalian Wanda Group. A move considered to be profitable for the Wanda Group, considering giving them the right to popular films and also China-U.S. collaboration. One of the recent movies jointly produced is “The Great Wall” starring Matt Damon. Dalian Wanda Group is an entertainment organization owned by Wang Jianlin. Legendary entertainment is added to its collection after acquiring the second-largest cinema chain in the U.S., AMC Entertainment Holdings in 2012, for $2.6 billion. Also, it owns several theaters and movie production companies in China. Wang, the founder and chairman of Dalian Wang Group, iterated the interest to purchase one of Hollywood’s “big six” movie studios to expand China’s “soft power.”
Reasons for Chinese Investment in the USA
The United State is considered to be a land of many opportunities. Most of the U.S markets are opened to the world to invest and expand the country’s economy as well as making profits in return. Most Chinese investors invest in the U.S to have a global presence and increase their earnings. Most of the Sectors in the U.S have a stable market, and there is an increase in demand. More so, the Chinese aim to dominate the world economy thereby investing not just in the U.S but in several countries across Europe and Africa as well. Also, in the bid to expand their businesses, most Chinese companies want to merge with U.S firms
- Major sectors Chinese Invest on
Chinese investors are determined to spread their business tentacles and are determined to diversify and invest in countries where opportunities are foreseen. One could but wonder why this huge investment outside their home country, China. Below are the major sectors that Chinese investors invest their money.
- Real Estate
China is considered to be the highest investors in the American Real estate. Of course, the U.S commercial real estate market is worth trillions of dollars, and the market is very much stable.
- Transportation
Transportation is another lucrative business that the Chinese invest heavily because of its high demand and usage, especially in big cities. Majority of people living in the big cities continue to use public transport system including those that own a private automobile.
- Entertainment Industry
The U.S entertainment industry, Hollywood is worth billions of dollars and is considered to have the wealthiest movie stars and production crews in the world. Several Chinese industries are interested in investing and partnering with major Hollywood movie studios to increase raise their portfolio and income.
- Electronic Organization
The United States is one of the major manufacturers and exporters of electronic gadgets in the world. The electronic market is lucrative and worth billions of dollars attracting several investors from around the world including Chinese.
Other sectors Chinese invest in are finance, Information Technology, and hospitality.
Chinese investment in USA Plummet
Presently, the important Chinese investment in the United States is almost vanishing due to the drastic drop in Chinese investment in the country. Chinese foreign investment in The U.S that used to be valued at 45.6 billion dollar has drastically nose-dived to $4.8 billion. Most of the Chinese investors having huge investments in the United States are opting to sell their real estate, hospitality, and entertainment businesses. According to a report released by Baker Mckenzie (a law firm), shows that most Chinese direct investment in the U.S dropped by 83% in 2018. It is believed that the Beijing self-imposed restriction on investment outside China is the major reason that led to the drastic fall of investment. This implies that most Chinese investment around the world will be sold off as well.
Conclusion Top 5 Chinese Investment in USA 2020- investment information over the years
Those are the Top 5 Chinese Investment in the United States. Chinese investment used to be on a high before the recent drop down due to the Beijing directive on investment outside the country. Chinese investors with the aim to expand and increase profitability have led to an increase in revenue and boost of the U.S economy.
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