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China buys USA
Material posted: Publication date: 11-04-2016
China accelerated pace buys U.S. company this year, and it begins to bother the U.S. lawmakers. During the first months of 2016 have already conducted 170 in the number of mergers and acquisitions undertaken by Chinese companies in the amount of $105 billion Is already more than in all of 2015.

In February, 45 members of Congress sent a letter to the Committee from the U.S. Treasury on foreign investment, which noted their concerns regarding the intentions of the group of Chinese investors to purchase the Chicago Board of exchange.

However, this is not the only deal that is currently on the minds of congressmen. Senator Sherrod brown on Thursday wrote a letter to the Minister of Finance Jacob Lew in which he expressed his concern regarding the national security of the United States after the conclusion of the aforementioned transactions.

In addition to deals with the Chicago stock exchange, this includes the sale of Chinese company ChemChina Syngenta for a record $48 billion, the sale of HNA Group company Ingram Micro for $6.3 billion, sale Haier GE for $5.4 billion and purchase of Zoomlion Terex at $4.9 billion

So far this year was 170 in the number of mergers and acquisitions undertaken by Chinese companies whose total value was $105 billion Is roughly on the same level as that of the transaction in 2015.

Lawmakers are concerned that the conclusion of a number of these deals will give Chinese companies, many of which are on geometricheskii, access to confidential information in the sphere of high technologies.

On Wednesday, Senator Chuck Grassley expressed concern about the fact that the Chinese ChemChina plans to merge with the Swiss manufacturer Syngenta seeds, biotechnology unit which is based in the US.

"Food and agriculture are included in the system infrastructure of the country, so the prospect of this merger suggests potential implications for national security of the country," he said.

Another controversial deal is a purchase of Chinese company Zoomlion Terex industrial.

Legislators, including Senator Mike Quigley, Congressman Duncan hunter and Congressman Ryan Zinke, was letter to CFIUS, urging to conduct a thorough analysis of the transaction.

Terex — division of the U.S. Department of defense and national security, and the U.S. air force, army and coast guard and NASA. So in his letters stresses the fact that Terex has access to confidential information relating to the infrastructure of the United States and its army.

"Analysis of CFIUS needs to go beyond consideration of each individual transaction. It is necessary to raise the whole problem of the effect it can have on US entering into these transactions," - said in a letter to brown.

CFIUS should carefully research the issue of beneficial ownership to ensure that public enterprises are not going to hide behind shell companies.

CFIUS should take into account the many different aspects of the problem of national security, and not only the question of acquisition of high technology that could have wider implications, and to put the country's security at risk.


Tags: USA , China

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