Chinese companies invested $17B in U.S. in 2014

World Today

Chinese companies have invested heavily in New York to establish projects such as Pacific Park, a mixed use commercial and residential development that will cover the Atlantic Terminal Urban Renewal Area (Wikipedia).

Chinese companies invested a total of $17 billion in the United States in 2014, according to a report by the American Enterprise Institute-Heritage Foundation China Global Investment Tracker on Monday.

The tracker follows Chinese investment and construction in the U.S., based on information released by Chinese companies and top business news wires, such as Dow Jones, according to Derek Scissors, resident scholar at the American Enterprise Institute in Washington.

“In total, there were 23 deals of $100 million or more taking place in 2014,” Scissors told China Daily. “The biggest single spending outlay was Lenovo’s acquisition of Motorola Mobility from Google for $2.91 billion.”

Scissors said it is natural for the U.S. to be the top recipient of Chinese investment, due to its size, resources, and advanced economy.

In 2014, the hottest sector for Chinese investment in the U.S. was real estate and the most popular destination for investment in the U.S. was California.

Many Chinese companies send their money overseas because Chinese real estate is currently underperforming, Scissors said. Because U.S. bonds have low returns, American property have become a popular investment vehicle for the Chinese, he added.