Chinese investors filed twice as many applications to US regulators last year seeking permission to buy stakes in US companies, according to a report the US government plans to release today.
The Treasury report, seen by Reuters, showed that Chinese investors submitted 44 applications to get the green light for their deals during Joe Biden’s first year in the US presidency, compared with 17 such requests previously in 2020.
Due to a change in US policy, the 2021 data includes applications from Hong Kong-based investors, while the 2020 data included the three such applications from Hong Kong in a separate category.
Most foreigners seeking to buy stakes in US companies, even non-majority ones, must seek approval from CFIUS, a powerful Treasury Department committee that reviews transactions on national security grounds and has the power to block them.
The commission, whose powers were greatly expanded by a 2018 law, had been used by former President Donald Trump to reverse many Chinese investments in the US.
The new report shows that China also submitted the largest number of applications of any other country, accounting for 16.5% of the total, followed by Canada and Japan with 10.3% and 9.6% respectively.
The top sectors in which the Chinese wanted to invest in 2019-2021 were “finance, information and services” as well as manufacturing, according to the application data.
However, Chinese investors sought only 10 investments in critical sectors in 2021, including technology, infrastructure and data, fewer than investors from the UK, Japan, South Korea, the Cayman Islands and Israel.
Source: RES-MPE
Source: Capital
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