The reverse side of the coin
Not only Western manufacturers of fashion and luxury are investing in China but also Chinese companies invest abroad in various sectors and increasingly
Chinese mergers and acquisitions (M&A) abroad were made mainly in Europe (around USD 10.4 billion, accounting for 34 % of all M & A), Asia (around USD 8 billion), North America (around USD 7 billion, thereof in USA USD 3.2 billion, one billion less than in 2010), Australia & New Zealand (around USD 4 billion) and South America (around USD 2.5 billion) and marginally in Africa. 51 % (61 %) of these investments went into resources, 22 % (3 %) into chemicals, 14 % (7%) in industrial companies and 12 % (15 %) in automotives.
Since 2003 up to the third quarter of 2011 Chinese direct investments in America had a total value of USD 15.9 billion thereof 38 % was private and 62 % government owned. In total there were 292 deals and 76 % of those are privately held and 24 % are government ownership. The sectors of these Chinese investments; 26 deals of a total value of USD 5.3 billion were invested in fossil fuels and chemicals, further 72 deals and a value of USD 3.6 billion were destined to IT, 26 deals of USD 2.9 billion to industrial machinery, USD 1.1 billion and 27 deals were for transportation, including aero and automotive, 11 deals at a value of 880 million was in the sectors of hospitality and real estate, further 27 deals at a value of USD 561 million went into health, bio and pharmaceutical sectors and 38 additional 38 investments in the order of USD402 million went into consumer products. In metals and minerals the investment amounts to USD 272 million and 10 deals, 38 deals and USD 218 million went into the finance and business service sector and three deals at the value of USD 107 million were destined to the logistics sector.
In 2011 Fosun Group acquired a stake of 10 % in Folli Folie Group S.A. based in Greece with outlets in China and activities as a high-end global retailer of jewellery, watches and fashion accessories. In this deal, contrary to many others China Investment Corporation (Chinese sovereign wealth fund) was not involved but its transaction volume was around USD 4 billion. In total 2011 Chinese investment abroad – according to A Capital (a prominent investment firm) sources – amounted to USD 68 billion (USD 68.8 billion) and 44% were M&A and 56% were investments in new plants and facilities abroad, whereas the official figure from China’s Ministry of Commerce tells that 2011 direct investment abroad amounted to USD 60 billion reflecting an increase of 1.8 %.