Business
22:50, 28-Jul-2017
Value of US deals decrease in China on rising trade tensions
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US corporate acquisitions in China fell to their lowest level in 14 years in the first half of this year, as trade tensions between the two countries and uncertainty about Chinese government regulations took a toll on deal making.
The value of mergers and acquisitions involving American companies in China dropped 32 percent to just 523 million US dollars in the six months to June 30 from 771 million in the same period last year, and was down 87 percent from 4 billion US dollars in the first six months of 2015.
Bankers and lawyers involved in deal making say that increasing signs of trade frictions between Washington and Beijing are acting as a deterrent. The tensions were reflected at a meeting earlier this month when officials from the two countries failed to agree on major new steps to reduce the U.S. trade deficit with China.
(Source: Reuters)