China’s Investing in the United States Extends Beyond Real Estate

China’s Investing in the United States Extends Beyond Real Estate

China’s Investing in the United States Extends Beyond Real Estate

The growing Chinese investment in the United States has extended beyond real estate, with more companies eyeing sectors closely related to Chinese domestic demand.

In recent years, more Chinese companies have been investing in the United States irregardless of size, industry and ownership, Shau Zhang, a partner at the Ernst & Young America, said in a recent interview.

Data from the US Commerce Department showed that Chinese investment was the fastest-growing source of FDI (foreign direct investment) in the United States in Y 2014.

Chinese investment in the United States not only created jobs for local economies but also contributed millions of dollars in reinvestment to the US market.

The Commerce Department said that US  affiliates of Chinese-owned firms employed over 37,000 US workers and invested $449% in R&D in Y 2013.

Chinese investment in the United States has moved beyond real estate, although the sector still accounted for a large portion, said Zhang. More companies are investing in IT, logistics, culture, sports, and the auto industry.

The Top 6 industry sectors in the United States favored by Chinese investors are: IT services, electronics, industry machinery, communications, business services, and auto components, according to the data.

These investments are in line with China’s transformation from an export and investment driven economy toward one focusing on services and domestic demand.

Chinese companies were diversifying their investments around the globe in order to enjoy the benefits of globalization and to meet a growing demand at home to consume, Zhang said.

As China outpaced the United States to become the world’s largest auto market, the auto industry has become one of the hottest areas for Chinese investment.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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