Backed by their government, Chinese companies splash out abroad

Chinese companies which traditionally look at natural resources acquisition are supported by the policy of President Xi Jinping, such as subsidies and credit, to acquire cutting-edge businesses abroad. In light of the policy encouragement, Dongfeng Motor invested in Peugeot Citroen, a French automaker, and Lenovo acquired Motorola Mobility. In 2015, we see rising cross-border acquisitions made by Chinese domestic companies. Targets include Waldorf-Astoria New York, Hoshino Resorts Tomamu, Pirelli, Micron Technology, Western Digital, Swissport International, and Kumport Terminal. Despite of the increase of US interest rate which makes Chinese companies more difficult to raise funds, Chinese research expert Zero2IPO believes, backed by the Chinese government, the overseas investment spree will continue in 2016. Nikkei Asian Review has more.