The Shift from East to West

Chinese Investment In North America

We continue to see and believe in a lasting shift of power from West to East, it is interesting to note the increasing amount of investments, not only in natural resources supply but also in various services, from East to West reflecting this new balance.

Amid the global economic slowdown, 2012 has shaped up to be a healthy year of investment for China. According to a recent PwC report, China's outbound deal values tripled in the first half of 2012.

Some of the biggest transactions to have transpired this year in North America include the impending $15.1 billion CNOOC (CEO)-Nexen (NXY) deal, and Dalian Wanda's $2.6 billion acquisition of AMC Entertainment.

But not everyone in North America is welcoming Chinese investment.

Issues around national security, state-owned enterprises, market access reciprocity, and regulatory transparency have all plagued Chinese deals in recent times. But given China's interest in North America, relative to other countries, are these concerns justified?

Firmex virtual data rooms recently developed this Infographic, which takes a deeper look into where China is investing. And whilst North America is on the list, it's just one of many regions to have sparked their interest.

The one thing that is clear is that China's interest in North America is growing, particularly in the natural resources sector, as they look to meet growing demands for energy. For North America, Chinese investment presents some obvious economic benefits as well.

Ultimately, it's in both China and North America's best interests to resolve their issues around foreign investment, in order to achieve increased growth, create more jobs and foster greater innovation.

[Via: Firmex: Virtual Data Rooms]