Bloomberg: China’s biggest-ever foreign acquisition frenzy is ending almost as dramatically as it began.
After stunning the world with a record $246 billion of announced outbound takeovers in 2016, Chinese dealmakers are now struggling to cope with tighter capital controls and increasingly wary counterparties. Cross-border purchases plunged 67 percent during the first four months of this year, the biggest drop for a comparable period since the depths of the global financial crisis in 2009, according to data compiled by Bloomberg.
Analysts see few signs of a rebound as Chinese regulators make it difficult for acquirers to move money overseas. Foreign sellers have also thrown up new hurdles after getting spooked by a string of canceled deals. Some are forcing suitors to pay unusually large penalties if offers fall through, while others are shunning Chinese bids in favor of lower-priced offers from elsewhere.
When Billy Clinton enabled the Chinese to pillage our manufacturing industry, I’m going to guess the average wage for the Chicom laborer was about .23 an hour. Present day their wages are close to ours. The government is still subsidizing their manufacturing. They can’t keep that up for long. NOBODY is better at making shit than the USA.
There is talk in some islands of the Northern Marianas of
cuddling up to china and telling the US to go fuck themselves.
Saipan already receives direct flights from china for tourists.
With that, also comes the big time crime and monetary scams.
They are building casinos there now. That’s just gonna make
things so much better!
Yeah, it’s going the same way it did when Japan tried it.
“Capital controls have clearly had a dampening effect on China’s outbound M&A activity”
Capital controls didn’t work in the Soviet Union, Cuba, Venezuela, … any government-controlled health-care plan, the Fed has made a mess of the US economy, etc., etc., etc. ….
… maybe one day someone in government, any government, will come up with the bright idea that the less you control Capital the better the economy becomes… & less need for government, any government to control it ……….. naaaaaaaaaaaaaaaaah
I say buy and invest American. Most of Europe is going down the maoist open borders tubes. China will not be a good place to invest in the lifetimes of all readers here. Trump is going to leverage all this and get the economy on track. We have shale resources coming out of our ears in Texas and elsewhere. If only he can muster up the juice to stop immigration and build the damned wall we’ll really be in bidness.