Nations respond to China’s purchase of foreign corporations

(VOVworld) - Twelve US senators have urged the government to prevent China’s Zhongwang International Group’s M&A deal purchasing the US Aleris Corporation which owns key technologies in aerospace and defense. The M&A deal, worth 1.1 billion USD, is one of a number of business transactions between Chinese enterprises and corporations in other countries around the globe.

Nations respond to China’s purchase of foreign corporations  - ảnh 1
Aleris is the supplier of aluminum to many industries, including the military and aerospace industries. (Photo: fortune.com)

In a letter to Treasury Secretary Jacob Lew, the senators urged the Committee on Foreign Investments in the US (CFIUS) to review and reject the Chinese aluminum giant Zhongwang International Group’s purchase of the aluminum products maker Aleris.

They said that once the deal becomes real, it would directly undermine national security.

The senators said Aleris’ defense manufacturing is a professional part of the US’s industrial defense base. Aleris technologies are essential to national security and US economic interests in the short and long term. 

The Zhongwang group, China’s biggest aluminum producer, announced Aleris’ purchase in August. Aleris has factories in the US, Belgium, Germany, and Germany and is the supplier of aluminum to many industries, including the military and aerospace industries.

The legislative bodies of the US and many European countries have shown worries about China’s purchase of businesses. Since the beginning of this year, Chinese investors have spent up to 200 billion USD to buy foreign companies in all fields.

In Germany, in the first half of this year the figure was 10 billion Euros. The primary statistics have surprised many European countries, forcing it to increase its control.

Germany has prevented China’s Fujian Grand Chip Investment Fund (FGC) from purchasing its Aixtron semiconductor equipment maker.

In France, Chinese investors have spent a great deal of money on atomics, chemistry, robot technology, hotels, grape-growing, and soccer clubs.

China’s investment strategy aims to look for knowhow, influence, and supplement what China still lacks and to replace famous brands that Chinese consumers like. By controlling foreign enterprises, China can influence the strategies of Western businesses.

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