- Al Gore’s climate-changers at EPA hearings foiled by cool temperatures
- Army’s 3-D printed bombs will create ‘a whole new universe’ of deadly capabilities
- Hamas calls on Hezbollah to join in fight against Israel
- Senators to FIFA, others: Don’t reward Putin with the World Cup in 2018
- U.S. condemns Israeli shelling of shelter in Gaza
- Obamacare shoots premiums up by 88 percent in California
- Chicken pox outbreak puts illegal immigrant facility on lockdown
- Obama to Republicans: ‘Stop just hatin’ all the time’
- U.S. chemical sites vulnerable despite millions spent on security: Congress
- Driverless cars to hit the British streets by 2015
Chinese ‘looking for opportunities’ in U.S.
Companies bullish when it comes to investing in American businesses
Question of the Day
China is bullish on the U.S. economy.
The world’s most populous country is in the midst of a wave of purchases and investments in American companies.
The influx of Chinese capital is welcomed by some economists, while others fear the increasing influence of the rising superpower.
“There are a lot of Chinese companies that are interested in coming to America and buying companies,” said Siva Yam, president of the U.S.-China Chamber of Commerce. “We have seen an increasing trend of Chinese companies investing in America.”
A number of Chinese firms have too much money not to invest, Mr. Yam said, and increasingly they are looking beyond their own shores for opportunities.
The $2.6 billion sale of U.S.-based theater chain AMC Entertainment last week to the Dalian Wanda Group is the latest — and most expensive — example of a cash-rich Chinese company making a splash, this time in the U.S. entertainment industry.
Chinese investors also are looking for openings in U.S. manufacturing, technology, financial services and real estate.
Dalian plans to spend another $500 million in upgrades to AMC’s more than 5,000 screens in 346 locations across the U.S. and Canada.
“It was simply worth it,” Dalian Chairman Wang Jianlin told the Wall Street Journal.
He also said his company is interested in investing in film production, luxury hotels and retail stores in the United States.
For AMC, the sale is a logical next step. The movie chain had struck a deal two years ago with China Lion Film Distribution to bring 15 popular Chinese films per year to American theaters.
Earlier in the month, China also made headway in the U.S. banking industry. The Federal Reserve approved the sale of the Bank of East Asia U.S.A., an American company, to China’s largest bank, Industrial and Commerce Bank of China Ltd.
“A lot of Chinese companies [had initial public offerings] in Hong Kong, so they were sitting on a pile of cash and they needed a return to support the stock price,” Mr. Yam said. “In order for them to justify the stock price, they need to look for opportunities. In China, they don’t see many right now. It is not as profitable as in the past, so they are looking for opportunities in America.”
Despite a rocky few years for the U.S. economy, the Chinese see America as a sound investment.
“Chinese people feel that the United States is the most stable economy in the world,” Mr. Yam said.
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at firstname.lastname@example.org.
- Dysfunction, disarray at Homeland Security management cited in IG's report
- GM's Barra to be first woman to run top American carmaker
- Treasury sells last shares in 'Government Motors'
- U.S. businesses reach out quickly to partners in Iran
- General Motors ending Chevrolet sales in Europe to focus on Opel and Vauxhall
Latest Blog Entries
TWT Video Picks
- Geraldo Rivera: Matt Drudge 'doing his best to stir up a civil war'
- Catholic League slams Obama: 'Do Christian lives mean so little to you?'
- Lois Lerner hated conservatives, new emails show
- HURT: Impeaching Obama is a losing strategy for the GOP
- MSNBC's Ronan Farrow questions lack of racial diversity in emoji characters
- Obama thanks Muslims for 'building the very fabric of our nation'
- Fla. mom arrested for allowing 7-year-old son to walk to park alone
- CARSON: Rudderless U.S. foreign policy
- Federal judge grants 90-day stay in D.C. gun case
- Patent workers paid to exercise, shop, do chores: report
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world