The Impact Of US Investment Protectionism To China’s Enterprises Investing In The US

As China’s economic development, with the growing enterprise comprehensivestrength, more and more enterprises choose to go abroad, start foreign directinvestment and cooperation, the enterprise’s economic strength has grown. Theinvestment overseas of China’s enterprises have accelerated development, accordingto Commerce Department statistics, in2012, China’s foreign investment after theU.S. and Japan, becomes the world’s third largest outward investor. In2013, China’sforeign direct investment reached$90.2billion. As the largest world’s foreigndirect investment (FDI) inflowing country, the United States attracting11%of theworld total foreign direct investment. In2013, China’s direct investment to theUnited States rose to$14billion."Going out" strategy is the objective requirement ofour country’s reform and opening up, but also of the transformation of economicdevelopment mode, adjusts the economic structure of the inevitable choice.Investment protectionism’s producing has a direct link with foreign directinvestment’s rapid increase. Especially with the rise of developing countries, theireconomic power strengthen quickly, these countries began to seek foreign directinvestment, transnational operations. All of those make the world’s foreign directinvestment continue to grow rapidly; the world economy has gained developmentrapidly. Also the developments promote the upgrading and development of the U.S.investment protectionism. Establishment of investment protectionism laws onforeign investment industry has some limitations, will increase economic issues topolitical issues, the U.S. Committee on Foreign Investment plays an important role which are distinctive features of U.S. investment protectionism.Chinese enterprises invest to overseas increasing fast, especially in recent years,the investment in the U.S. gains rapidly. Chinese enterprises acquire a lot ofwell-known U.S. companies, including: Lenovo acquisition of IBM, Wanda CinemaLine acquired the U.S. AMC Entertainment Inc.; universal acquisition A123lithiumSystems, Shuanghui International acquired the world’s largest pork processorSmithfield. Chinese enterprises, such as Huawei, etc. in the U.S. market forinvestment, hampered by the U.S., the unequal nature of Sino-US bilateralinvestment strengthened. U.S. investment protectionism is prevailing, endangering"national security" and protecting the "national interest" as an excuse, U.S.implement overly strict security review of foreign investment enterprises in China,however, the concept of national security and national interests of U.S. is not clear toChina companies in the United State, U.S. Foreign Investment Committee to reviewthe scope of the big, also has obvious political leanings. These all have brought togreater resistance. Chines enterprises overseas investment and mergers andacquisitions has increased every year in the United States case of failure. CNOOCbid for Unocal failed, Sany Group to invest in the United States was hindered by U.S.Foreign Investment Committee and the President, Huawei bid for3Com,2Wire,Motorola all had failed.The prevailing of U.S. investment protectionism is not only to protect thedomestic market and the interests of the consortium, Huawei and other companiesare also out of fears growing. Social ideology between China and the United Statesare different. Different interests, China’s rapid rise and economic strength, as well asin the international community to establish a good image of the country and status,all of those affect the implementation of the U.S. investment protectionism. U.S.investment protectionism slow the pace of development of Chinese enterprisesoverseas, to bring serious economic losses, is not conducive to corporate brand image. In the U.S. investment protectionism evolving context, Chinese enterprisesshould actively respond to U.S. investment protectionism and seek new developmentstrategy to get rid of the U.S. investment protectionism, and move in a healthy, goodforeign direct investment path. To deal with the U.S. investment protectionism, theChinese government is also the important force to be reckoned, the Chinesegovernment through the strategic dialogue with the United States, to create afavorable political and economic environment, the signing of bilateral investmentprotection agreements, etc., can contain a certain extent, the United Statesinvestment protectionism.