China set record in investing in US

San Francisco, April 13——Chinese investment in the United States grew to more than $15 billion in 2015, setting a new record. California stayed a leading host for Chinese FDI, according a new report published recently.

The 2016 update of its “New Neighbors” report was released by Rhodium Group and the National Committee on US-China Relations on April 12. The report finds that Chinese investment in acquisitions, new operations, and expansions in the United States grew to more than $15 billion in 2015. The number of Chinese-affiliated companies in the US exceeded 1,900 by year-end 2015, extending across more than 80% of congressional districts (362 of 435).

As greenfield foreign direct investment (FDI) picked up and many existing companies expanded local employment, the number of Americans employed by Chinese-affiliated companies rose by another 12%, to 90,000.

With over $30 billion already in pending deals and projects, 2016 is likely to be another record year for Chinese FDI in the US, the report said. 

Overall, Chinese investors have poured $8 billion into California since 2000, supporting 452 Chinese-owned businesses that employed more than 9,500 people as of the end of 2015.

The report read that “California maintained its position as a leading host for Chinese FDI, attracting a diverse mix of mostly mid-sized investments. High-tech sectors such as semiconductors saw major investments.

"Real estate continues to receive great attention, with progress on major developments (Greenland’s Metropolis site in Los Angeles) and new projects (Oceanwide’s new project at Market and Mission St. in San Francisco). California is also benefiting from a Chinese rush to invest in overseas movie production; CITIC's investment in the new Dick Cook Studios is one such example."

Chinese investors continue to flock to California for investments in real estate (particularly in L.A. and the Bay Area), tech, biotech and energy.

The patterns of Chinese investment in 2015 show that US innovation clusters, strong protection of intellectual property rights, and the talent pool continue to be major draws for Chinese companies, increasing their role as contributors to American innovation and competitiveness. 

Access to technology and talent remains an important driver of Chinese acquisitions in the US, as illustrated by a growing number of transactions in information and communications technology, automotive, aviation, and health and biotech