Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

China Invades U.S. Cities with Record Investments

Companies / Investing 2013 Jun 28, 2013 - 11:56 AM GMT

By: Money_Morning


Diane Alter writes: There's a new wave of investment occurring across the United States - and the "who" behind it makes this a very interesting story...

Faced with an economic slowdown at home, Chinese companies are pouring money into U.S. businesses at a record clip.

From energy to aviation to entertainment, Chinese investment in the U.S. swelled to a record $6.5 billion last year.

But that's just the beginning of this Chinese "invasion."

According to Rhodium Group, which conducts detailed tracking of Chinese investments in the U.S., new business investments are now on track to top that gigantic figure again in 2013.

"We are in the midst of a structural growth story that will transform the China-U.S. investment relationship from a one-way street into a two-way street," Thilo Hanemann of Rhodium told CNBC.

A major reason behind this investment trend: U.S. technological development.

A December 2012 U.S. Treasury Department Committee on Foreign Investment report said it "judges with moderate confidence that there is likely a coordinated strategy among one or more foreign governments or companies to acquire U.S. companies involved in research, development, or production of critical technologies for which the United States is a leading producer."

A finger wasn't directly pointed at China, but the inference was clear.

"Chinese companies are looking for management prowess and technology upgrades when they make acquisitions," Ben Cavender, a senior analyst at China Market Research Group, told The Wall Street Journal.

China's "Silent War" is About to Become Red Hot

When you see the extent of critical secrets China has stolen from'll be shocked.

But when you learn the details behind America's massive retaliation'll be thrilled.

Here's how America plans to take down China's "Internet Army"

While some U.S. companies welcome the needed investment - seeing as the alternative in some cases is to close up shop - the U.S. government is still cautious about its new business ties with China.

Not every deal gets approval. For example, in 2012, the Obama administration blocked China's Sany Group's investment in an Oregon wind farm citing proximity to restricted air space.

Increased cyber espionage by China has also put a sharper focus on the increased acquisitions.

After remaining silent for years, the U.S. government has become much more open about its convictions that China is actively stealing intellectual property.

"The threat is not exaggerated," Dave Hess, president of Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) unit, told Reuters. "It's a significant issue that we're all struggling with."

But as many of you may have noticed, China keeps moving in. There are a number of U.S. cities where Chinese investment has increased drastically due to the available industries.

Here's a list of six U.S. cities where Chinese investment has hit - or is nearing - billions of dollars.

Hottest Spots for Chinese Investment in the U.S.

Tar Heel, NC

The last Chinese investment in the U.S. was a $4.72 billion deal to buy Smithfield Foods Inc. (NYSE: SFD). Shuanghui International Holdings Ltd.'s bid for the Tar Heel, NC based pork company, founded in 1936, would be among the largest acquisitions of a U.S. company by China to-date if successful.

Concerns have been raised about the deal due to numerous reports of Chinese companies skirting environmental regulations. In addition, critics maintain the deal could push family farmers and producers out of competitive markets. They want the deal carefully reviewed; some want it blocked.

Where China is investing in the US

Oklahoma City, OK

Sinopec Corp, China's second largest energy company, inked a deal early this year to buy a one-third stake in an oil and natural gas shale project owned by Oklahoma City, OK based Chesapeake Energy Corp (NYSE: CHK) for $2.2 billion.

Early last year, Sinopec (also known as China Petrochemical Group), purchased a one-third stake in five oil projects in Oklahoma City based Devon Energy Group (NYSE: DVN). The Chinese energy giant invested $2.2 billion in 1.2 million acres in Devon's position in the Tuscaloosa marine shale in Alabama and Mississippi, the Niobrara in Colorado, the Mississippian, the Utica Shale in Ohio and the Michigan Basin.

Kansas City, MO

In 2012, multinational Chinese company Dalian Wanda Group completed the biggest purchase of a U.S. company by China when it bought AMC Entertainment Inc. for $2.6 billion.

Founded in 1920 in Kansas City, MO by the Dubinsky Brothers, the takeover put some 5,034 North American screens in 346 multiplex location owned by AMC in China's hands.

"The acquisition of AMC is just the start," Jianlin Wang, chairman of Dalian Wanda told CNBC last month, and "probably before the end of the year we complete one or two more deals."

By the end of the decade, Wang expects to spend another $7 billion in the U.S.

Ann Arbor, MI

A123 makes batteries for electric cars and grid storage, technologies China sees as a huge growth industry.

So, in a deal cleared in 2013, Chinese company Wanxiang Group purchased the bankrupt lithium ion battery maker in a $256.5 million acquisition that left scores of lawmakers worried.

Backed by U.S. tax dollars, A123 received a $249 million grant from the Recovery Act to construct advanced manufacturing plants in Michigan.

Washington's policy makers are anxious not only about taxpayer dollars backing a company now owned by a Chinese company, but also about sensitive battery technology that could have military application being taken.

China's "Internet Army" Might As Well Surrender Now

One small highly specialized tech company is about to do something every American can get excited about: Crush China's attacks... while making unbelievable money for investors.

Here's how America plans to take down China's "Internet Army"

Detroit, MI

In a push into America's auto industry, a plethora of Chinese companies are settling in the Motor City.

A revival in U.S. automotive market has attracted a growing Chinese population and business network to Detroit. Membership in Detroit's Chinese Business Association counts over 100 Chinese owned businesses, most auto-related, in the region.

"Chinese owned companies are investing in American business and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers," Bill Vlasic wrote in The New York Times.

Santa Monica, CA

Chinese Internet company Tencent took a majority stake in Santa Monica-based Riot Games worth roughly $400 million in early 2011.

Best known for the blockbuster game League of Legends, Riot Games boasts the game has amassed 32.5 million players, 11.5 million who play monthly and 4.2 monthly who play daily.

In March 2012, League of Legends became the No. 1 title in Korean PC Café. In Taiwan, estimates are 5% of the city's entire population plays the game.

Source :

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules