Chinese Love for U.S. Is Smothering American Companies

Chinese firms are ramping their M&A efforts with American stocks, but the interest has reached uncomfortable levels

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Don’t Even Think About It, Huawei

Huawei 185 Chinese Love for U.S. Is Smothering American CompaniesTechnically speaking, there was no political or public backlash prompted by the possibility of an acquisition, mostly because neither company ever even got a chance to float the idea. But, there’s little doubt that if smartphone makers ZTE or Huawei were mulling a partnership with — or the acquisition of — an American company, it was nipped in the bud before there was ever even a bud.

Along with a report published in October of last year, the House Intelligence Committee said it as plainly as could be: “China has the means, opportunity, and motive to use telecommunications companies for malicious purposes.” The panel went on to explain that U.S. regulators (referring to the The Committee on Foreign Investment in the United States ) should make a point of denying any mergers with U.S. companies, or acquisitions of U.S. companies, by Huawei Technologies or ZTE Corporation.

It doesn’t get much more straight-forward and paranoid than that.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/chinese-love-u-s-companies-become-smothering/.

©2014 InvestorPlace Media, LLC

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