A strong shift from real estate tycoons to IT-giants marks a shift at China’s economy in the ongoing political meetings in Beijing, says author Shaun Rein of The War for China’s Wallet: Profiting from the New World Order to the South China Morning Post. “China is picking five to 10 private technology companies to make them national champions.”
Chinese insurance and investment conglomerate Fosun International snapped up Brazilian asset manager Guide Investimentos for US$52 million on Tuesday, reversing a trend of disinvestment after the central government came after conglomerates with excessive outbound investments. Shaun Rein, author of The War for China’s Wallet: Profiting from the New World Order, explains in the South China Morning Post why Brazil is such a popular destination.
China’s financial authorities have scrutinized over 2017 many deals by Chinese companies, but the purchase by Fosun of the Asahi 19.9% stake in China’s key brewer Tsingtao might go down well with them because the capital goes into a domestic company, explains business analyst Ben Cavender to Reuters.
Slow, bureaucratic and not eager to innovate. In many ways Western companies seem different from their Chinese counterparts. Those Chinese companies are not only growing like crazy, they innovate fast and increasingly organize themselves differently, internally, how they invest in other companies and deal with their competitors. Tencent, Alibaba and Baidu are the biggest names, but under the private enterprises in China, they are certainly not alone. Take Haier, Huawei, Yili, Mengniu and Xiaomi.
How to deal with Chinese investors? That question is asked more frequently by government agencies, startups, larger and smaller companies outside China, and even soccer clubs. Capital is flowing over from China to the rest of the world, partly through the massive One Belt, One Road (OBOR) investment program. But many Chinese companies, private and state-owned, also have their own investment agenda.
At the China Speakers Bureau, we offer a range of speakers who can help you to deal with that question. There might not be one answer, but as China’s economic standing in the world changes, looking for possible answers becomes more crucial for the world outside China.
Chinese companies are running for cover as president Xi Jinping’s powerplay is also hitting the economy. China regularly pulls the reins, when too much financial power is flowing outside the state economy, says renowned economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know® in the Financial Times.
China´s campaign against corruption is no longer limited to state-owned companies and organizations, but increasingly turns against private companies too. A logical development, tells China rich list founder Rupert Hoogewerf in the Financial Times in an article about Fosun founder Guo Guangchang.
Guo Guangchang was the latest of China´s tycoons to get in trouble with the authorities. But the number of billionaires getting into the anti-corruption net is actually pretty low, says Hurun China Rich List founder Rupert Hoogewerf to Reuters. Lower than the number of government officials.