Chinese Investment in U.S.: Strict American regulations curb Chinese tech M&As
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About Chinese tech investments in America, China's tech M&As are hitting barriers in the US, leading to a dive of 87 percent in terms of investment volume in that area in 2017 from the previous year.
American company 4-5-1 Research says the total revenues for Chinese mergers and buyouts in the US plunged to less than 2 billion US dollars in 2017 from 15 billion dollars in 2016. Analysts say that was due to tighter regulations in the US on foreign investments that looked to buy technology. Chinese investments are a main target for US authorities. The concern is that outflows of wealth and technology could weaken America's strategic standing. Forty percent of China's exports to the U.S. are generated by American companies operating in China. Those companies have been allowed to set up shop in China under joint-venture agreements that require technology transfers from the U.S. parent company. The US is now putting those activities on hold.