China is fast becoming a major exporter of capital.
Everyone has heard about the Chinese buying up land in Africa to tap the country's cheap natural resources. But what about China firms buying AMC Cinema for $2.6 billion in 2012? Or Smithfield Farms for $4.7 billion last year? China wants American technological know-how, it wants American consumers, and it wants natural resources.
On July 9 and 10, Treasury Secretary Jacob Lew and Secretary of State John Kerry will be in Beijing to discuss opening up both markets to even more investment. Washington is hot for Chinese capital. The Obama Administration has made foreign direct investment, an a so-called "Asian tilt", part of the country's economic foreign policy. To achieve that, Lew and Kerry are off to Beijing for the sixth annual Strategic and Economic Dialogue to discuss a bilateral investment treaty.
Road blocks remain, though.
The U.S. has an uneven playing field, going up against large state owned enterprises (SEO) that have subsidies U.S. competitors don't have. China continues to play offense, while the U.S. is mostly on defense — pushing China to reform its foreign exchange rate policies, get tougher on cyber crime and protection of intellectual property, and open its markets to favored sectors of the U.S. economy, like financial services.
But as the two sides shake hands and back stab during the course of their discussions, U.S. states are welcoming Chinese capital.
"Signing a bilateral investment treaty is a good thing for the U.S.," says Neil Asbury, CEO of the Legacy Companies, a food service equipment manufacturer. "This is good for China, but it is really good for us," he says.
Here is a look at the top 10 recipients of China money over the last fourteen years, according to data compiled by the Rhodium Group.
Where China Invests In America
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