China’s State Administration for Foreign Exchange is buying $1.5 billion worth of pension assets from General Motors. The assets are positions in funds held by the Carlyle Group, Blackstone, and CVC Capital. This is the latest in a surge of Chinese investment in the U.S., investment that benefits all the parties involved.
Even with this deal, Chinese non-bond investment in the U.S., according to The Heritage Foundation’s China Global Investment Tracker, is less than $45 billion since 2005 (excluding the PRC’s purchases of our Treasury bonds). Our GDP in a single year is about $15 trillion, so deals like this one with GM are a drop in the bucket.
But even a drop matters to someone who’s thirsty. GM can use all the help it can get—even better if it doesn’t come from American taxpayers. Similarly, AMC Entertainment needed help, and China’s Dalian Wanda provided it with a $2.6 billion acquisition.
On the Chinese side, the year kicked off with a $2.44 billion investment by state giant Sinopec in some of Devon Energy’s gas projects, one of several large Chinese investments in gas. China needs energy, and the U.S. has both the resources and the technology to deliver it.
There are a lot of problems in the U.S.–China economic relationship, most of them originating in Beijing. Chinese state subsidies and intellectual property violations are ugly, and the U.S. is now adding misleading and unproductive language during election season.
The investments this year, though, are a good reminder that America and China have a huge economic relationship for a good reason: There are lots of deals that lots of people want to make.
America can't deny we do like Chinese things also! In fact I don't know what we don't like besides the government authority taking more from what the people earn and…
P.S. Love the make and look of the American Olympic uniforms! Professional, respectful, sophisticated! Compliments to Ralph Lauren, manufacturing and models. I hope it's decided to keep if it hasn't been already decided! If America was business friendly and not bogged down with government rulership, Ralph Lauren wouldn't have looked anywhere else!
MADE IN CHINA=POISON. MADE IN CHINA=CRAP.
I understand but my sympathies are to the people! If the government people controlling, had respect for the betterment of people, China would be in a better place!!!!
Most of the people like American stuffs. Good to know that china likes it too.
I would suggest the author reads James Sherk 's article in the Heritage Backgrounder July 13 Obama's Auto bailout or UAW bailout. The long and short of it is GM received 12.6 billion in money through the bankruptcy that it should not have received, if the bankruptcy followed traditional American bankruptcy law. It's a great article, but my point is that the 1.5 billion in pension assets the Chinese bought will probably yield the chinese in the end much of our taxpayer money that Obama gave the UAW and beat the American people out of. The Chinese are playing American politicians like fools and Americans are paying the price in many financial area's. They are doing so because American (internationalist) and Wall Streeters are in on the scam making a buck as well.