In the modern era, China has become a great and powerful nation. It is one of the top countries in terms of economy. With this growing wealth, the Chinese people have been aggressive in investing their money. The country has been involved in numerous trade negotiations and investments in multiple countries. One of the countries that China has been in long-term trade talks with is the United States. In fact, Chinese investors are investing heavily in the United States in the past years. In fact, Chinese companies have invested a total of 51.09 billion dollars in 2016. In effect, some American brands have been bought by Chinese investors. Some of them are American brands that people have been accustomed to. Let’s take a look at some of these iconic American brands that have been acquired by the Chinese.
Today, General Electric is a business conglomerate that owns and operates different subsidiaries of different disciplines. In the 19th century, the company was formed when Thomas Edison was able to merge its different electric companies through investors like JP Morgan and Anthony Drexel, to form the Edison General Electric Company. Since then the company had been involved in multiple industries and has been well known in the manufacturing of household appliances. In 2016, the company sold its appliance division to the Chinese company Qingdao Haier Company for 5.4 billion dollars. This was done by the company on efforts to focus more on its more lucrative divisions like jet engine production and power generation. Haier then said that the company would still be managed by existing management and would still use the GE brand on its appliances.
Another tech company that Chinese investors acquired is Motorola Mobility. Motorola Mobility is a spin-off from Motorola Inc. when the company was split into Motorola Mobility and Motorola Solutions in 2011. The original company, Motorola Inc., was founded in the 1930’s when the company was manufacturing car radios. Since then, the company became a leader in telecommunications with products such as police car radio receivers, and handheld radios. One of Motorola’s greatest feat was when it played a major role in the Apollo 11 mission as it took responsibility for the electronics used for the mission. During the rise of the mobile phone industry, Motorola was also a front runner developing cell phones which consumers loved. However, during the emergence of the smartphone, Motorola has been overshadowed by companies like Apple and Samsung. In 2014, Motorola Mobility was sold to Lenovo for 2.9 billion dollars.
Chinese companies have been aggressive in acquiring top American companies. All of these companies have been a trademark in their own industries and has made a mark in American history. However, the United States is not the only country that China is investing in. The country has also invested in other countries like Japan. In fact, Chinese Foxconn Technology Group acquired 66 percent of the Japanese tech giant Sharp. However, recent controversies between the countries have slowed the Chinese people on investing in Japan. The most recent one is a Japanese CEO denying the claim of China about the Nanking massacre. Events like these play a major role in the business transactions between countries.
These moves by Chinese investors are attempts to widen their businesses by acquiring or merging with companies that have been in the game for quite a long time. These moves seem beneficial for both parties wherein American companies make a profit on the sale of their company and would have more liquidity in venturing into other fields of their business. While for the growing Chinese companies, acquiring a brand name that has been in the industry for a long time would have a positive impact on their company image and branding.