Revealing the Extensive Portfolio of Chinese Businesses in the United States: A Look at Chinese Ownership in American Companies
In the past decade, Chinese investment in the United States has seen a significant rise, particularly in sectors such as tech firms, food chains, energy providers, and real estate. This trend reached its peak around 2016-2017, with tens of billions of dollars flowing into US tech startups and firms.
One of the most notable investments was Shuanghui International's $4.7 billion purchase of Smithfield Foods in 2013, making it one of America's biggest pork producers. Similarly, Chinese tech giants like Alibaba, Tencent, Baidu, and WeChat have established a substantial presence in the US tech landscape.
However, recent years have seen a sharp decline in Chinese investment due to heightened regulatory scrutiny, national security concerns, and geopolitical tensions. The Committee on Foreign Investment in the United States (CFIUS) has been instrumental in this shift, blocking deals and issuing divestiture orders involving Chinese firms.
This decline is evident in the case of Dalian Wanda Group, which purchased Legendary Entertainment, a major film studio, in 2016 and owns AMC Theatres, the world's largest cinema chain. Yet, these deals have since been met with increased scrutiny, leading to a slowdown in Chinese investment.
The rise in Chinese investments has also led to concerns about intellectual property theft, technology transfer, and potential compromise of national security. For instance, the acquisition of Cirrus Aircraft by China Aviation Industry General Aircraft (CAIGA) in 2011 and AEI, a Houston-based power company, by China Guodian Corporation and China Development Bank International Investment Ltd in 2011, have raised such concerns.
By 2016, Chinese direct investment in the US reached over $46 billion. Notable acquisitions include Wanxiang's purchase of Fisker Automotive, a maker of luxury electric vehicles, and the acquisition of American farming land by foreign entities, which increased from $22 billion in 2011 to $28 billion in 2016.
Despite these concerns, it's important to note that Chinese investment isn't inherently negative. Foreign-owned agricultural firms, for example, have sustained local jobs and contributed positively to regional economies. Chinese companies have also made investments in major US film studios and production companies, contributing to the continued operation and growth of these industries.
However, as the landscape of Chinese investment in the US evolves, there's a growing focus on foreign policy concerning China. The value of agricultural land owned by foreign entities has increased, raising concerns about food security due to foreign entities owning key segments of the US agri-food sector.
As of 2020, China held over $1 trillion in U.S. debt, making it one of the largest foreign creditors to America. Chinese companies and investors own a significant portion of US businesses, real estate, and debt, underscoring the importance of maintaining a balanced approach to foreign investment.
In conclusion, while the exact figures may not be definitively quantified, the landscape indicates a peak and then downturn of Chinese investment in US tech over the past decade, with recent years seeing significant declines due to regulatory and geopolitical pressures. As the US government continues to scrutinize foreign investment more closely, particularly those coming from China, it's crucial to strike a balance between encouraging economic growth and ensuring national security.
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