In the past two years, private investors have taken on more medium and large-sized deals, while activity by state-owned firms has declined, remaining mostly limited to energy and a handful of manufacturing and service industries such as aviation or telecommunications.In 2012, private firms for the first time accounted for more than half of total transaction value (59%).In 2013, private firms and entrepreneurs accounted for 87% of transactions and 76% of total value (Figure 3).2013 was a milestone for employment provided by Chinese firms in the United States.According to our count, Chinese-owned companies provided more than 70,000 full-time jobs in the United States by the end of 2013, a more than 8-fold increase compared to 2007 (around 9,000 jobs) (Figure 4).A less aggressive M&A environment is positive for Chinese buyers, as their lack of experience and the burdensome approval system in China limits their readiness to compete head-to-head with domestic or other foreign firms for US assets. Several political risks threaten a positive 2014 OFDI outlook: For one, China’s economic and political reforms contain elements that could negatively affect overseas investment in some circumstances.
Private firms are now dominating capital inflows, accounting for more than 80% of transactions and more than 70% of total transaction value.
The progress in negotiations over a US-China BIT and particularly Beijing’s readiness to improve market access for US firms in China will also be an important indicator for sentiment in the US towards Chinese investment and thus political deal risk in the United States outside of CFIUS.
Performance attribution for track 1: jack hammer - Philip Stott & The MMTBPerformance attribution for track 3: Coffee Cup - Mark Blackwell Performance attribution for track 8: Barry Mc Queen as the barrister, Phil the carpenter - circular saw Performance attribution for track 9: Chris Walsh, Jade D'adrens, Dave Hatty, Dick Buster & Lindy, John Michie, Mark Thomas, Vid, Phil & Michelle Kenihan, Philip Stott, Conway Savage, Donna Mc Rae, Andrea, Pierre Sutcliffe, Stephen Cassie & Edward Duffield, as the crowd Original cover design by Andrew Duffield & Buster Stiggs.
Private-sector Chinese companies in particular currently face a complicated approval process for outbound investment, which often involves multiple bureaucratic entities with different interests and priorities.
This process delays decisions, increases deal risk and puts Chinese firms at a disadvantage in competitive bidding processes.