Over the last four months I’ve been involved in a research project that delves into the nature of one of China’s most important industries. What set off this somewhat Quixotic effort was the question of whether Chinese investment abroad, and in particular in the United States, was a good thing or a bad thing.
As I pursue the question on an industry-specific level, the authors of China’s Expanding Role in Global Mergers and Acquisitions Markets take a different approach to the question. Rather than evaluate Chinese outward foreign-direct investment through based on corporate merit, they propose a framework for evaluating the desirability and risk implicit in Chinese investment.
Whether you agree with their conclusions or not, their book comes at a propitious time. The Committee on Foreign Investment in the United States (CFIUS), for all of its strengths, has some glaring weaknesses, not least that its processes are unnecessarily opaque. What Wolf, Chow et. al. offer the CFIUS and Congress is the first draft of a more transparent set of criterion by which to evaluate investment.
As close as RAND is to the US government, its conclusions are not a cipher for US policy. This book, therefore, should be seen as the starting point of a larger debate about where and how Chinese investment in the US should be welcomed, and where it should be restricted. As such, the book is a welcome and much-needed addition to the wider debate.
- China Most Likely Country to Fund Renewables (cleantechies.com)
- Alibaba’s Jack Ma is no double agent (tech.fortune.cnn.com)
- Merger of U.S., Chinese firms is cautionary tale (usatoday.com)
- Cambodia: China is largest, Japan second largest Investor. (livinginpp.wordpress.com)
- Analysis: ‘We’re Not Going To See China Buying Europe’ (huffingtonpost.com)