China to boost Merger and Acquisition deals in the United States

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Chinese enterprises are showing a lot of interest in investing in companies operating overseas- especially in the United States. And according to a survey conducted by PwC, the trend is said to become more frequent and orderly in 2018.

If investment figures of the current year are taken into account, China has so far wrapped up outbound deals worth $97 billion in first of 3 quarters of this year. And the last quarter is said to see $7 billion worth deals which seems to be a healthy sign in business terms.

PwC estimates that half of those investments made by Chinese firms were in companies having their base in the United States.

Last year, the government of China added an amendment to companies doing business in China from America. And as per the deal terms, the companies should use the infrastructure of Chinese firms in order to continue in business.

Multinational giants such as AWS, Microsoft, and Google have already bowed to the new law and are said to be using IT Infrastructure of Chinese firms.

PwC research estimates that China will now on focus on overseas investment as it has set up a tight business plan on its soil.

Already its companies such as Tencent are showing a lot of interest in investing in companies operating from Asia Pacific and which are headquartered in North America.

For example, Tencent has recently invested heavily in US companies operating in digital health and biotech. It has also acquired two Silicon Valley startups which were into medical technology in order to address China’s biggest health-care challenges.

Some of the companies which were acquired or are running on investments made from China are-
•    Grail, a startup to screen for cancer in the blood
•    Karius, company which is into R&D in Genetics
•    Clear Labs which is into food testing
•    Scanadu, CliniCloud, HomeHero, Circle Medical and such.
•    In the 2Qof 2017, Tencent invested $155 million in health and artificial intelligence company iCarbonX and $100 million in US-based patient social networking company “PatientsLikeMe”.

Although, the current US President Donald Trump is stressing out on lines such as “Make in America and serve America”, Chinese business enthusiasts are still finding it easy to creep into the business landscape of America.

US SEC says that businesses will always welcome investors from any continent as they need money to flourish further. And to do so, they will always make the investors exploit loopholes in the system.

What do you say…? Do you think investments from China will help America achieve economic growth in near future…?

Share your views in the comments section below.

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Naveen Goud is a writer at Cyber Security Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security