Despite scrutiny, Chinese investments in US are set to increase

Global Business

Chinese Foreign Direct Investment or “FDI” to the United States is expected to hit an all time high in 2016, but rejected offers and criticism of China by some U.S. presidential candidates is causing some to question whether the United States is welcoming investments from China.

CCTV America’s Karina Huber reports.

In March, Starwood Hotels and Resorts received a $14 billion bid from China’s Anbang Insurance. It would’ve been China’s biggest U.S. acquisition ever, but the deal eventually fell through as Marriott upped its offer to buy Starwood.

The Anbang bid illustrates just how much Chinese companies are willing to pay to diversify their holdings.

FDIs from China to the United States is projected to hit an all-time high in 2016 of between 20 and 30 billion dollars.

But, criticism of China, led predominantly by U.S. presidential candidate Donald Trump, is creating the perception that the United States is not receptive to Chinese mergers and acquisitions. Experts say if Chinese companies think they will face increased scrutiny by U.S. politicians and regulators, they might shy away from investing, at least until the election is over.