Part of being a global superpower is having some money to throw
Want to fund a giant
80 million person megacity in the Pearl River Delta for $322
billion? Piece of cake.
Re-build the Silk Road for up to $1 trillion? Not an issue.
But China doesn’t only show off its deep pockets domestically.
The country has also been extremely active on the global market,
buying up everything from natural resources in Africa to
luxurious real estate in Manhattan. In total, Chinese companies
have spent over $1 trillion on overseas investment over
the last decade, and this has only accelerated in recent years as
investors seek to acquire safe haven assets abroad.
Today’s infographic comes from SCMP, and it shows where Chinese overseas
investment has been going, with a particular focus on the United
States between 2000 and 2016.
Cumulatively, China has put $109.5 billion into the U.S. during
this time period, with about 70% of that money coming from
private companies. The sectors that have received the most
Chinese investment so far include real estate and hospitality
($29.5 billion), information technology ($14.2 billion), energy
($13.4 billion), and entertainment ($8.8 billion).
According to Forbes, here were the five biggest investments
made in the U.S. in 2016:
1. HNA Tourism Group gets 25% stake in Hilton for $6.5
This deal helps Chinese conglomerate HNA and Hilton to take
advantage of China’s growing tourism market both in China and
2. Tianjin Tianhai buys Ingram Micro for $6.1
This is the biggest purchase of an American information
technology company by a Chinese firm so far. Ingram Micro is the
world’s largest wholesaler in technology products and services.
3. Haier Group buys GE’s appliance business for $5.6
Haier is a massive consumer electronics and appliances company in
China, with roughly $30 billion of revenue per year. However, the
company has yet to make inroads in the North American market.
This made buying GE’s appliances division a very strategic
opportunity for the company.
4. Anbang Insurance pays $5.5 billion for Strategic
Hotels And Resorts
One of China’s largest insurance companies bought 15 luxury
properties, including the Four Seasons in Washington, D.C. and
the JW Marriot Essex House in New York. The deal was originally
valued at $6.5 billion, but one of the hotels was dropped after
security concerns were raised due to its proximity to a U.S.
naval base in San Diego. That property is worth approximately $1
5. Dalian Wanda buys Legendary Entertainment for $3.5
Legendary Entertainment is a Hollywood production company that
has the rights to popular films such as The Dark Knight,
Inception, Jurassic World and Straight Outta Compton.
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