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FX.co ★ Foreign companies reluctant to accept investments from China

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Forex Humor:::2017-08-11T17:03:08

Foreign companies reluctant to accept investments from China

The Chinese are actively investing their money abroad. The volume of investments into foreign projects is really huge as the state policy encourages it. The Chinese injected 880 billion dollars into foreign companies for the past 10 year, and this is not the limit.

The Linklaters consulting company estimated that China may increase the investment volume by 70 percent to $1.5 trillion in the next ten years. Bearing in mind that the Chinese authorities control almost every step of the national companies, these massive investments have surely been approved by the government. In fact, the state policy supports such initiatives and even stimulates investments in the most important sectors. Particularly, investments in the manufacturing sector, high tech and foreign trade are encouraged. But even with such a strong support, the Chinese investors face some difficulties. Most foreign states argue against any attempts of mergers with companies from China. It is difficult to say why the reaction is so negative, but this attitude is formed towards the Chinese mainly. As a result, deals in total volume of $75 billion were scuttled last year.

Regulators all over the world impose restrictions, especially if the utilities and high tech spheres are targeted. For example, the Chinese failed to purchase Axitron, the German manufacturer of semiconductors. That is why, investors from China settle for some minor firms from other sectors.

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