Chinese Businesses in America

Chinese owned businesses in the United States, are they successful? Did you know that there are many Startups funded by Chinese investors trying to make it in the U.S. as well as large companies largely in ownership of the Chinese capital? Let us explore this subject.

There have been many technology investments made from the United States in China, but also from China to the U.S. Chinese technology in not what it used to be, it is moved beyond copying Western technology and the Chinese are becoming serious investors in the Silicon Valley

China is very connected to the Silicon Valley / San Francisco Bay Area through technology and innovation because the Chinese primarily use it for outbound technology investments. Many startups and early-stage companies have received funding from Chinese investors. Chinese investors are looking for cutting edge technologies to fill the competitive gaps in China. The startups do not just access funding but also the penetration to the Chinese market.


Image credits: https://unsplash.com/s/photos/chinese-business - Akson

Perhaps you didn’t know but Chinese companies own a part or all of a number of U.S. companies that are very important for the U.S economy. Take a look at some of the bigger companies in Chinese ownership:

AMC

AMC is a popular cinema company based in Leawood, KS. The company has been present in the U.S market for over a century. In 2012 a Chinese company named Dalian Wanda Group became the majority stakeholder giving them power to make decisions on the executive level. In the Covid crisis, AMC needed further investments from China to endure on the market but Wanda was limited by the Chinese government regarding further investments. Because of this AMC has to struggle without garanties of success on the market and without help from its Chinese investors.

GENERAL MOTORS

Based in Detroit, Michigan GM relies on the combination of production for needs in the U.S and also teaming up with Shanghai Automotive Industry Corp (SAIC) to stay profitable. Together they formed SAIC-GM, a 6 million square-foot facility in Shanghai all for the earlier mentioned purpose.

SNAPCHAT

There were 187 million users present on the app last year. Snapchat sold 200 million shares at $17 and sold the rest to investors. First, Facebook offered to buy Snapchat for $4 billion, but they opted out. Its shares are, at the moment, very popular and a Chinese ownership of the shares adds up to 14%.

So, Chinese capital is very present in the U.S. and it can play a significant role in the U.S. economy in the future. However, startups or large corporations are evolving and through technology achieving success and profit at home and abroad.


Written by: Mislav Zlomislć


References:

http://www.bayareaeconomy.org/report/chinese-innovation/

https://www.madeinamerica.com/chinese-investors/


Mislav Zlomislić is a digital marketing intern of PS Media Enterprise. He is a former student of Zagreb school of economics and management, Zagreb, Croatia