Japanese media: Chinese companies buy a large number of US companies do not think it will be smooth sailing

Japanese media: Why did Chinese companies not enter the US?

Translation of Qiao Heng

Japan's "Nikkei Asia Review" February 14 article, the original title: China is not the same as Japan's fierce evil. This year marks the 30th anniversary of the US-Japan semiconductor agreement, which has triggered the decline of the Japanese electronics industry. Behind the signing of this agreement is the fierce collision between Japanese companies and US companies and society. In the 1980s, Japanese companies entered the US market in a big way, and they constantly bought the well-known assets of the United States, which triggered opposition.


Today, 30 years later, Japan was replaced by China. Today, China is aggressively acquiring the iconic assets of the United States. According to the statistics of the American research company Rongding Group, China’s direct investment in the United States surged by 30% in 2015, reaching US$15.7 billion. China's Anbang Insurance Group bought the Waldorf Astoria Hotel in New York for $2 billion, and China's PC maker Lenovo Group bought Motorola Mobile for $2.9 billion. Since this year, Chinese companies have continued to make billions of dollars in mergers and acquisitions. For example, Haier Group, a consumer electronics manufacturer, bought GE's home appliance business, and the real estate development company Dalian Wanda Group acquired the movie production company Legend Entertainment. If placed 30 years ago, such acquisitions will inevitably lead to fierce criticism from the US media and politicians. But so far, there is very little friction.

So why did China’s sudden entry into the United States not cause embarrassment like Japan’s? One reason is that Americans and American companies are getting used to globalization. There may be opposition, but the internationalization of business and management has been seen as inevitable.

Second, the two countries have no direct competition in major industries, which is different from the original US-Japan competition. China and the United States are still at different stages of development. The United States has turned to an economy dominated by information technology and finance, while China is still a manufacturing-based economy. In addition, there are technological gaps in a wide range of areas between the two countries, which gives American society some reassurance.

Although China, which advocates state capitalism, has acquired a large number of US companies, don't think it will be smooth sailing. At the beginning, Japanese companies set up factories in the United States, brought their own exquisite production systems and spurred American counterparts to follow suit. Nowadays, Chinese companies invest in the United States, and the jobs created are low-paying jobs. When the Chinese turned management resources to the United States, Americans did not see much benefit. And the acquisition of high-tech companies is likely to trigger embarrassment for those who care about national security and intellectual property rights.