China’s direct investment in the United States has plummeted by more than 90%, the lowest in seven years.

In the past few years, the Chinese company’s “sweeping goods” scene in the US market has turned into a dust of history. A report released by the consulting firm Rhodium Group on Tuesday showed that in the first five months of this year, China’s direct investment in US mergers and acquisitions and greenfield investments fell 92% year-on-year, only $1.8 billion, a record seven. The lowest level in the year. (Remarks: Greenfield investment, also known as the creation of investment, refers to the fact that some or all of the assets of the investment entity in the host country in accordance with local laws are owned by foreign investors.) If the assets are divested, the situation becomes even more severe: before this year. In five months, the net value of China’s direct investment in the United States was $7.8 billion. Rong Ding’s statistics also show that the completed China-to-US deal has doubled in 2016, reaching a record high of US$46 billion, but it has shrunk by more than 30% last year to US$29 billion, the first time in a decade. Sharply reduced. In the years before the first half of last year, Chinese companies frequently carried out various forms of transactions such as mergers, acquisitions, and shareholdings overseas. HNA once robbed 276 billion in 28 months to buy and buy; Wanda madly bought dozens of overseas companies, including the acquisition of the second largest cinema line in the United States AMC, overseas acquisitions and total investment once exceeded 230 billion yuan. Ampang acquired the Waldorf Astoria, a core landmark in New York, with a purchase price of $1.95 billion that set the record for the US hotel industry. 1529552017129267.png Rong Ding also said that Chinese companies such as Hainan Airlines, Ampang and Wanda are currently selling their US assets, which has led to the completion of US assets of US$9.6 billion in the first five months of this year. About US$100. All of this stems from the strict control of cross-border capital flows by the Chinese government since the second half of last year, as well as the domestic policy of strong de-leveraging and prevention and control of financial risks. At the same time, the deterioration of Sino-US economic and trade relations has made China's investment in the United States worse. The escalating trade friction between China and the United States has caused Chinese companies to "sweep the goods" to the sea. Ant’s purchase of the US remittance company, Quick Cash International, at the beginning of the year ended in failure. Rong Ding said that in the first five months, there were a total of more than $2 billion worth of abortions for US acquisitions. 1529552039360649.png In this regard, Thilo Hanemann, senior policy researcher at Rongding Group, said: "The pending M&A trading channels are still narrow, and the average transaction value is much lower than previously expected."
According to him, compared with the previous transactions of hundreds of millions of dollars or more, the average amount of Chinese transactions in the United States so far this year is only $46 million. Xinhua News Agency said at the beginning of the year that Chinese companies have become the focus of US national security review. Industry data shows that since the beginning of 2016, 27 Chinese companies have failed to complete the US acquisition, which is almost equivalent to the sum of the uncompleted transactions of the UK, France, Germany, Japan, Italy and Canada. The Xinhua News Agency said that the US government has repeatedly used the national security review mechanism of the Foreign Investment Committee (CFIUS) to hinder Chinese companies from investing in the United States. Thilo Hanemann predicted in April that due to changes in the political trends between China and the United States, two-way direct investment between the two countries is expected to decline further this year.

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