Chinese Investment In U.S. Tech Booms Despite Cybersecurity Fears
From: The World Post
Chinese tech companies have splurged on major acquisitions of U.S. high tech firms in the first quarter of 2014, spending big bucks in pursuit of the markets, technology and talent found in the U.S., according to a report released Tuesday by the Asia Society and the Rhodium Group. But with cybersecurity questions driving a wedge in U.S.-China relations recently, the acquisitions are generating equal amounts of excitement and anxiety.
“This ought to be the most positive new trend in the bilateral economic relationship in several decades,” said Daniel Rosen, co-founder of the Rhodium Group and co-author of the report. “Unfortunately there have been misapprehensions on both sides that took a really positive story and turned it into an anxious story, a fraught one.”
Chinese firms have already spent $6 billion this year on direct investments in high tech firms in the U.S., surpassing their cumulative investment from 2009 to 2012, according to data collected by the Rhodium Group, an advisory firm that closely tracks these numbers. The direct investment includes the opening of new facilities as well as purchases of at least a 10 percent stake in existing companies.
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