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Chinese Acquiring US Companies

The US and China are among the most powerful countries today. In terms of the military, both countries are definitely among the strongest. When it comes to the economy of both countries they are also in the top two. However, in recent years the economy of China has started in growing. Before it might not be comparable to the economy of the US but due to the resources, land, and population of China it has always had a lot of potential in terms of improving the current state of their economy.

In the past, China was mainly known for their manufacturing industry and for the cheap labor and low price of goods. However, times have already changed. Some countries have already overtaken China in manufacturing and cost of labor is already starting to rise. However, despite these problems, the effects of the rapid growth of the economy of China could already be seen.

Even if the US and China could be considered as rivals in terms of which country is more powerful the relations between both countries especially when it comes to business has already improved. China, in recent years, has already started to open its markets making it possible for investors to conduct business inside and outside of the country.

Companies outside of China have also been attracted due to the continuous growth of its economy. China may not be leading in all sectors of business, however, a lot of Chinese companies have already started looking out and investing in companies outside of China. One of the countries Chinese companies are targeting is the US after all the US has also one of the biggest economies which mean more opportunities for Chinese businessmen who wish to branch out.

Some of the US companies being acquired by the Chinese are already declining however due to the buyout by these big Chinese companies they are able to bounce back and continue their business. A lot of big time Chinese companies have already taken part of companies such as AMC, GE Appliances, and other entertainment companies. A lot of these companies are known worldwide and have already been established in the US. Such move by the Chinese shows that the pockets of these companies are big enough to afford business from the US and it also shows just how interested Chinese companies are in the economy of the US.

These companies would not be acquired if there would be no gain or any benefit at all. We have yet to see whether the US will continue to allow such acquisitions being made by these Chinese companies they could either make it harder for Chinese companies if there is not much to gain for these US companies.

China has already started to show just how interested they are in US companies. There may be a lot of reasons for this, profit and opportunity are just some but there are a lot more areas where China can invest. It is all up to how big the impact the growth of their economy will be in order for these companies to make such moves. China has a lot of different options, especially with its neighboring countries.

China has already started investing in smaller countries in the region in terms of loan and other forms of support however one of the countries it may encounter problems with is Japan considering the issue with the Nanjing Massacre. We could never really tell since when it comes to business as long as there is profit companies will always find ways in order to resolve or work around issues in order for both sides to earn.

 

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Marty Rogers

Marty Rogers