Chinese Investors Spent More in U.S Businesses Than Ever Before

MoneyChinese investments in United State businesses hit a record $15 million in 2015. This foreign investment grew by 30% last year, and investors are progressively spreading the money throughout the nation as they branch out and expand into different industries.

With 26.5 million American businesses to choose from, Chinese investors are expressing interest in moving beyond companies in just California and New York. Cities like Boston, Washington D.C, and Chicago are all top prospects Chinese investment.

Steve Collins, president of capital markets for real estate firm Jones Lang LaSalle, anticipates that as more cash flows in to China, the investors will start looking beyond the normal cities of Los Angeles, San Francisco, and New York.

“They want a bite of the apple in the U.S. They feel its a safe and big market,” Collins tells the Los Angeles Times.

Several investors have also taken a new interest in a broader mix of industries, which is driving the geographic diversification. These industries are bringing the Chinese from coastal, urban cities to smaller rural communities.

The Chinese annual economic growth slowed 6.9% in 2015, resulting in the lowest rate reported in 25 years. This action has spurred investors to seek out more security and diversity abroad, according to a study done by the nonprofit National Committee on U.S-China Relations and research firm Rhodium Group.

While GOP front runner Donald Trump has been largely critical of the U.S being on the losing end of its dealing with China, studies have shown there to be significant benefits. Overall, Chinese investments have resulted in the purchase or creation of more than 1,900 companies, which, in turn, has employed approximately 90,000 U.S. workers.

Employment in the United States also tripled from 2012 to 2015. Further investments could lead to employment not only for the 9-to-5 set but for freelance employees in a number of sectors.

With more than $30 billion in pending Chinese investment deals already in progress, this year is on track to be another record setting year for Chinese foreign investment in the United States.

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