China’s overseas buying spree continues unabated, with companies upping the pace of their US asset purchases.
According to a recent report by the Los Angeles Times China’s acquisitions of US companies have risen from around $1 billion in 2008 at the time of the Great Financial Crisis to $7.7 billion in 2012 so far.
China’s asset acquisitions have surged despite perennial concerns over compromised national security and state-ownership of its vanguard overseas investors.
Although the objective of many of the purchases is to obtain technological know-how or more reputable foreign brand names, the resources sector continues to be a key target for acquisitions by Chinese investors:
Natural resources remain a major target for the Chinese, who have scoured the globe for oil and minerals to fuel the nation’s rapid industrial development. In April, China Petrochemical Corp, also known as Sinopec, closed a $2.5-billion deal to buy a one-third stake in Devon Energy Corp. of Oklahoma City.