How China is investing in America

China has billions of American dollars, and lately has been using some of that money to buy land and stocks.

By Kim Peterson Mar 4, 2010 1:17PM
china © Brand X/SuperStockAll those cheap made-in-China goods we buy from Wal-Mart (WMT) and other stores have given China billions of American dollars to play with.

Now, China is increasingly using that money to invest in America. It's buying up real estate across the country, and is upping its stakes in American companies like Coca-Cola (KO) and Johnson & Johnson (JNJ), reports the Los Angeles Times.

China is investing globally. Its direct investments overseas rose 6.5% last year to $43.3 billion, writes the Times' Don Lee. That could hit $60 billion this year.

So what's China buying?It's taking advantage of our troubled real estate market to get into land. But it's doing so through partners -- not in an overt way that some Americans might dislike.

In the last year, China has poured hundreds of millions of dollars into real-estate funds managed by Goldman Sachs (GS) and other companies, Lee writes.

"In the past year, the U.S. real estate market seemed to have hit bottom and signs of recovery were obvious," a researcher at the Ministry of Commerce in Beijing told the Times.

China has also bought shares of Apple (AAPL) and Visa (V), and last year spent $1.6 billion buying a 15.8% stake in power company AES Corp., Lee writes.

Hotels are a target as well. A state-owned hotel company in China recently formed a 50-50 joint venture with an American company to buy Interstate Hotels & Resorts, which manages 232 properties, the Times reports.

Chinese companies have learned that allying with partners tends to draw less attention, said Wenran Jiang, a China expert at the University of Alberta who has studied Chinese investments around the globe. When multiple parties are involved in a deal, he said, the Chinese buyer's stake gets diluted. "So you can't report that the Chinese are taking over."

4Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
279
279 rated 2
471
471 rated 3
714
714 rated 4
642
642 rated 5
604
604 rated 6
614
614 rated 7
450
450 rated 8
303
303 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
BIDUBAIDU Inc10
CITCIT GROUP Inc NEW10
HPQHEWLETT PACKARD CO10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.