China to invest $1.5 trillion in foreign companies

Almaty. August 8. Silkroadnews – Over the next 10 years China will invest $1.5 trillion in foreign companies, information portal reported with reference to the report by the law firm Linklaters LLP.
Over the next decade the acquisition of foreign companies in China will be a new trend. The volume of investments will grow 70% in the next 10 years, and the support of foreign enterprises will continue, despite the political obstacles. A new report by Linklaters LLP says, over the next 10 years China will spend $1.5 trillion on purchase of foreign companies.
It is noted that over the past decade, Chinese companies have already invested $880 billion into foreign enterprises, but this impressive figure promises to grow by another 70%.
China’s domestic policy supports investments into production technologies, which is especially true for advanced development.
According to publication, currently the acquisition and development of innovative technologies are a priority for the country. China has already started “Made in China 2025” strategy implementation, whose goal is to ensure independence from foreign companies and develop a significant share of technological and production markets.
Chinese companies are increasing their investment. Rhodium Group reports, between January and May 2017, China’s investments into the US amounted to $22 billion, which is 100% more compared to the same period of last year.
A large flow of China’s money goes to the artificial intelligence field, where the PRC and the US are fighting for influence in the world market. Over the past 6 years, Chinese investors have invested nearly $700 million into 51 American companies, whose developments are related to artificial intelligence, the report said.
It is noted, the Chinese authorities are concerned about the large infusion of money into foreign companies. They are afraid these processes could damage the PRC’s growth of economy and banking system.