Black and White Program

Chinese investment into the U.S. is reportedly on the rise

November 7th, 2012 by Steven Barnes

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Despite the bashing by U.S. election candidates regarding China on matters of currency manipulation, claims of U.S. job losses, patent infringement, and product dumping; Chinese investment into the U.S. is reportedly on the rise. At least according to Rhodium Group, a New York consulting firm that tracks Chinese outward investment who reports that firms from China have invested over $6 billion into U.S. companies so far (up to September tracking) in 2012. This compares to $5.8 billion in 2010, the prior maximum amount of Chinese investment in U.S. firms.

China’s growing middle class and affluent individuals have shown a consistent appetite for U.S. real estate, business firms, and primarily energy related projects. A strong GDP rate in China (Approximately 8.8% for 2011) that has also ranged between 8 and 14% over the past 5-7 years has produced a significant amount of disposable business investment funds. Even with a slight slowdown of the GDP in the past year, investor interest is up in U.S. projects. Affluent investors there believe a better return can be had in the U.S. than on the home front. Some difficulty has surfaced as U.S. sentiments towards Chinese investment has not also been positive and political bashing has it toll as well. Recently the Obama Administration, citing national security concerns, intervened to kill off the Chinese purchase of four wind-farm projects sites. The sites were reportedly too close to restricted air space in Oregon. The investors were two Chinese nationals. But situations like that seem to be the exception and not the norm as deals appear to be on the upswing.

Whether China’s GDP cools or political storms cause difficulty; two things seem certain, Chinese interest in U.S. investments continue to be strong no comma and U.S. firms looking for readily available capital seem open minded to them.

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