While economic growth has come down dramatically, it is very unlikely Chinese companies will reduce their investments in Europe and America, says business analyst Shaun Rein to the VOA. Foreign investments will be a key strategy for 2016.
Despite these hurdles, Chinese investment will continue to pour into the United States, driven also by China’s transition from a manufacturing economy to one based on expanding technological and service sectors. This economic shift is pushing Chinese firms to merge with companies in the West that have the brands and technological know-how that China needs.
Shaun Rein, founder of China Market Research Group, said, “They’re looking to diversify their revenue streams. So they are looking at more outbound investment, specifically now into the more developed markets, like the U.S. and western Europe. The second reason why they are going abroad is they are looking to buy technology, brands and management know-how.”
These mergers are set to be a key part of the strategies of many Chinese companies this year. In the first quarter of 2016, China announced 115 outbound deals, up 51 percent from the same period last year, beating all previous annual records.
Are you looking for more experts on China´s outbound investments at the China Speakers Bureau? Do check out this list.