China Buys the World Analyzing China's Overseas Investments

This book discusses the strategies that will define China’s overseas expansion in the coming years. China is spending billions of dollars acquiring overseas companies and assets, from the Chicago Mercantile Exchange to the Hinkley Point nuclear station. W

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Andrew Collier

China Buys the World

Andrew Collier

China Buys the World Analyzing China’s Overseas Investments

Andrew Collier Orient Capital Research Hong Kong, Hong Kong

ISBN 978-981-10-7493-6    ISBN 978-981-10-7494-3 (eBook) https://doi.org/10.1007/978-981-10-7494-3 Library of Congress Control Number: 2017962437 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover pattern © Melisa Hasan Printed on acid-free paper This Palgrave Pivot imprint is published by Springer Nature The registered company is Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-­01/04 Gateway East, Singapore 189721, Singapore

Contents

1 Introduction   1 2 The Setting  11 3 The Dealmakers  25 4 State or No State?  47 5 China’s Global Tentacles  63 6 The Money Behind the Deals  79 7 Will China Take over the World?  95 Bibliography 119 Index 125

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List of Figures

Fig. 2.1 Fig. 2.2 Fig. 2.3 Fig. 2.4 Fig. 2.5 Fig. 2.6 Fig. 2.7 Fig. 2.8 Fig. 3.1 Fig. 3.2 Fig. 3.3 Fig. 3.4 Fig. 3.5 Fig. 3.6 Fig. 3.7

China’s Outbound Transactions. Source: American Enterprise Institute, Global Investment Tracker Outbound Deals by Sector. Source: American Enterprise Institute, Global Investment Tracker Outbound Investments by Industry. Source: American Enterprise Institute, Global Investment Tracker Average Transaction Size. Source: American Enterprise Institute, Global Investment Tracker China Outbound Investment by Region China’s FDI Flows by Geography. Source: Bloomberg China’s Outbound Investments, 2005 and 2016 Breakdown of Public and Private Investments. Source: Bloomberg ChemChina’s investment returns. Source: Bloomberg Analysis of Bank Assets Controlled by High Net Worth Individuals. Source: Company Filings, National Bureau of Statistics Distribut