INSIGHTS by HDTS

Chinese firms are on the prowl for US companies. The acquisition spree is just getting started for the following reasons:

1. Chinese firms are flush with cash. 
2. Chinese firms want to acquire established businesses and their brands to accelerate an otherwise painfully slow US market entrance requiring brand development.
3. Chinese firms are looking to secure intellectual property to enhance their current product offerings.

As Shaun Rein emphasizes in his acclaimed book The End Of Cheap China, acquisitions led by Chinese firms need not be looked at in a negative light. Comparatively inexperienced with Western business best practices, Chinese companies are typically disinterested in overtaking operations. Instead, they tend to invest passively and keep senior management in place. The healthy balance sheets of these acquirers allows for increased investment which fuels US job creation.