Chinafornia Here We Come: State Sees Record Investments from China in 2016

Chinafornia Here We Come: State Sees Record Investments from China in 2016
Sep 29, 2016 Translated by eChinacities.com

Editor’s Note: This article focuses on recent investment by Chinese companies in the United States, particularly California. Whilst Chinese investment in the U.S. is nothing new, the sheer scale of recent activity is worth noting. Examining the focus of Chinese investment in California, the piece provides and interesting look into the changing dynamics between the two nations.

Chinese investment in the United States is massive, and this year has brought larger investments than ever before. The growth rate of Chinese investments in California is rising at an alarming pace. Many have joked that California has actually become Chinafornia.

AFP news agency reported that data from the American consulting firm Rhodium Group and the National Committee on United States-China Relations shows that Chinese companies invested $15 billion in the U.S. in 2015. This year, investments may be double that.

Increased Investments
California (especially the San Francisco Bay Area and Los Angeles) has become the main frontier for Chinese overseas investment. Billions of dollars of capital have flowed into technology, renewable energy, entertainment, real estate and more.

Matt Sheehan, a specialist in Chinese investment in California, is almost certain that Chinese investment in the United States and specifically in California will multiply over the next few years. “If China’s domestic economy continues to thrive, then there will be a lot of idle funds left for strategic investment and ‘vanity’ overseas acquisitions.”

Rhodium Group said that since 2000, China has invested $8 billion in California. This is more than in any other state in the United States. 452 Chinese-owned companies employ more than 9,500 employees in California. These include Alibaba and Tencent.

Entertainment and Real Estate
In January 2016, Dalian-based giant Wanda Group spent $3.5 billion to acquire U.S. Legendary Entertainment. Recently, on September 22, Wanda Group and Sony Pictures announced a large co-finance deal.

In recent years, Chinese-funded enterprises have invested large funds into the U.S. real estate industry. Chinese buyers are purchasing record numbers of high-end residential and commercial properties.

In the first five months of 2016, Chinese investors poured nearly $11 billion in the U.S. real estate market. Last year, total real estate investments were $4.37 billion, according to Cushman & Wakefield.

Source: DW News

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Keywords: Chinese Investment in the United States Chinese investment in California

4 Comments

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1

Quinn68
comment|73197|28680

As an American, I say with any luck California will fall off into the ocean.

Oct 02, 2016 18:58 Report Abuse

2

Guest2650392
comment|73195|294488

Nice cover for the laundering and parking of corruption money. Take it at your own peril.

Oct 01, 2016 15:10 Report Abuse

3

Guest2368048
comment|73194|263116

Anyone who has been in China for a couple of years knows Chinese's hidden motives are anything but benign.

Sep 30, 2016 11:11 Report Abuse

4

Guest388182
comment|73192|43131

maybe the krap'll hold back the wildfires

Sep 29, 2016 16:55 Report Abuse