A recent study has found that Chinese companies are now responsible for 90,000 American jobs, with the majority of these provided by state-owned or government backed purchasers.
Amid the ongoing presidential campaign and obligatory China-bashing by both Republican and Democratic hopefuls, the report provides a backdrop to some of the issues raised by candidates over the past few months.
According to the report published by the National Committee on U.S.-China Relations and Rhodium Group, the Chinese invested a record $15 billion into the US last year, with an additional $30 billion worth of projects planned or awaiting approval by regulators.
Since the year 2000, China has spent more than $100 billion buying or making significant investments in 1,900 companies. And the influx of money is only set to increase.
Most purchases or acquisitions take place in sectors out of the public eye, like energy or construction, but this is beginning to change. AMC Theatres, the second largest movie theater chain in the US, is now owned by China’s richest man Wang Jianlin through the Dalian Wanda Group.
Yes, the same Wang Jianlin who earlier this week promised to crush the Shanghai Disneyland by opening up his own theme parks across the country.
But whether Americans view increasing Chinese investment as good or bad thing depends very much on their prevailing world view. Is the acquisition of US assets and companies a sinister tactic which threatens national security, or an economic opportunity to be capitalized on?
Chris Brewster, a Washington-based lawyer who clearly falls into the latter camp said, “As China becomes more and more invested in the United States, it has a bigger and bigger stake in the success of the American economy, so that creates a shared interest.”
On the other hand, the presumptive Republican nominee Donald Trump has made his views on China pretty clear since announcing his candidacy, threatening to impose all kinds of trade tariffs and declare the country as a currency manipulator on day one.
[Image via Rhodium Group]