more news
Chinese investment in the United States would reach a record high in 2016
The great wave of Chinese investment is gaining power.
Direct investment by China in the United States is on track to reach a record 30,000 billion in 2016, according to research firm Rhodium Group and the National Committee on US-China Relations, which works to promote rapprochement between the countries.
That's twice the record investment of 15,000 million dollars last year.
There is little evidence that investment will decelerate as China works to increase its exposure to higher-income countries and to counter an economic slowdown in the country. Fears about the stability of the yuan have also increased foreign investment.
"The current review of the growth model of China, the lowest political barriers to foreign investment, and greater confidence of Chinese enterprises to invest abroad will boost the output of hundreds of billions of dollars from China the next decade ", predicted the groups.
The report estimates that more than 1,900 affiliated Chinese companies are now established in the US, and employ approximately 90,000 full-time workers. Tens of thousands of workers are employed indirectly through Chinese companies.
It is expected that a project of construction of skyscrapers in Chicago led by Dalian Wanda owned by the richest man in China, Wang Jianlin- create about 2,000 construction jobs, for example.
New York remains one of the most popular among the Chinese to invest, especially in the sectors of real estate or finance places. The most prominent commercial real estate investments include the purchase by Chase Manhattan Fosun building and the acquisition of the iconic Waldorf Astoria hotel by the insurer Anbang.
Technology and entertainment industries California are also a great attraction, while energy investments tend to cluster in Texas.
Although the overall investment environment is optimistic, the report notes greater scrutiny of Chinese agreements in the US, which have become an issue this election year.
"The regulators and members of Congress have a responsibility to ensure that the legitimate concerns about [investment] Chinese are addressed," the report said. "At the same time, it is also necessary to ensure that the political rhetoric and politicization not unnecessarily impede investment flows that help job creation, especially in an election year."
The report also warns that the distortions in the economic system of China, as the privileges for state-owned-enterprises could have an adverse effect on foreign investment, and even damage to countries with close economic ties with China.
