The move by Blackstone not to sell a landmark California hotel to the Anbang Insurance group for security concerns shows domestic volatility in the US and serious risks for Chinese companies looking for investment opportunities, says business analyst Shaun Rein to the South China Morning Post.
The South China Morning Post:
The remaining hotel is located on a peninsula that’s also home to the US naval base Coronado. The military facility comprises eight installations that lie on either side of the hotel, including an amphibious base, landing fields, and warfare training centre.
It’s one of the main training grounds for the special-operations Navy SEALs, Bloomberg reported.
“People are over reacting and there is great fear about Chinese companies expanding their investment in the US, particularly at a time when the presidential election is setting up China as the bogeyman…this is apparently has acted as a damper to Anbang’s purchase attempt,” said Shaun Rein, managing director of Shanghai-based China Market Research Group.
“For Anbang itself, credibility remains a challenge as their retreat from the Starwood deal has triggered doubts into their real intention and ability, while the lack of transparency of the company’s ownership structure remains another major concern,” he added.
Are you looking for more experts on China´s outbound investments? Do check out this list.