More Chinese Overseas Investments in the Mix

The past week has seen a number of announcements regarding Chinese investments overseas:

• New World Hospitality, a Hong Kong-based holding company, acquired Dallas-based Rosewood Hotels for a reported $229.5 million;
• Chinese companies executed trade deals with German companies this week worth a total value of $15 billion USD, including a $7.5B order for a (lucky number) 88 Airbus 320s; and
• UK and PRC companies signed $2.3 billion worth in deals, including a $1.5B loan from Bank of China to British gas company BG Group.

For comparison, as part of a Sino-Franco deal ceremony, companies from both nations locked in about $20 billion in trade, while the US inked China deals worth $45B back in January.  What's more, the PRC also agreed to back off of preferences given to Chinese companies in government contracts, a commitment the PRC leadership seems to have honored today.

Two aspects of these transactions are troubling.  First, the lack of money headed towards the United States.  Second, at least one of the US deals involves technology transfers of the sort that Siemens and Kawasaki now regret.  To sum up, I am more than a little concerned that US companies are more concerned with short-term infusions of cash than long-term viability.

The Chinese are coming!

As mentioned in early May, I am in the midst of drafting an article on the supposed influx of Chinese investment in the United States predicted by Rosen and Haneman in their report for the Asia Society.  In the article, I will focus on the changing nature of Chinese Offshore Direct Investment (ODI) in the US and try to cut through the noise surrounding this supposedly new phenomenon.

In the interim, a delegation from CNC World has visited Denver to discuss investment opportunities in Colorado.  According to their website, CNC is a television news network owned and operated by Xinhua News Agency--that is, "CNC and Xinhua's TV Department are the same institution under different names."  But in a Denver Post article, a representative from Colorado's Office of Economic Development and International Trade suggested that CNC is considering Colorado as a location for a 300-person production studio.  Based upon meeting them while they were here, I am skeptical that CNC actually plans to build such a facility in Denver, but I do hope that whatever form their investment takes, it will involve many return visits to the Centennial State.  After all, like Beijing, Denver has some very nice mountains and some good telecom companies to enjoy.

If CNC does invest in Colorado, it would join CNOOC's recent $1.27 billion investment in the Chesapeake Energy's Niobrara shale venture, which straddles Colorado, Nebraska, and Wyoming.  Based upon the most recent reports, however, it looks like the number of jobs created by other Asian companies operating Colorado, particularly those headquartered in Japan, still exceeds that of Chinese companies by a long shot.  I suppose that leaves a lot of room for growth.

Weiser named the new dean of CU Law

My mentor and friend, Phil Weiser, has been named the dean at CU Law.  It's nice to see that the University of Colorado made the right choice.

So here I was working on a law review article on outbound PRC investments in the United States...

...when this article in the New York Times popped up.  What perfect timing!

It's been a while...

...but I'm back on the air.  As of yesterday, I am now working for a law firm with a China practice, so you can expect more posts on China-related legal matters in this forum.  Sorry for the silence.

Maoist Management classes in Business Schools

In a fit of unacknowledged irony, China's capitalism-oriented business schools are now teaching Maoist management techniques to students. As Gus would say, "what?"

Hilarious!

Perhaps I am more sensitive to this because my son was just circumcised, but Danwei's article on circumcision in China had me laughing out loud...