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Experts Cautiously Optimistic on China's Outbound M&A in US

A lawyer explains the current outlook and challenges that Chinese companies face when acquiring US firms

By Xie Yi Updated Aug.28

China's merger and acquisition activity in the US have surged in recent years. In 2016, according to economic research firm Rhodium Group, China’s foreign direct investment in the US soared to $45.6 billion – triple the total from the year before.

Yet the future of China’s global M&A has become a matter of debate. Chinese investors face great challenges, including tighter controls on outbound capital flows from China, dangerously high levels of corporate debt and increased scrutiny over investment from China. 

What is the current outlook for the acquisition of US companies by Chinese companies?

What are the serious challenges facing Chinese companies that want to acquire US companies?

Jeffery Bell, a veteran attorney in M&A, answers these questions.