Chinese Investments Arouse Interest of U.S. Regulators
Chinese companies have increased the pace of their investments in the United States, leading to increased security concerns, Reuters reports. The total sum of investments in the U.S. by Chinese companies rose to $11.5 billion in 2012. This is reflective of a growing trend that has seen Chinese firms more willing and more able to put money overseas, especially into America. The sum is the second highest of all time, surpassed only by the investment numbers from 2007.
This has also forced Chinese companies to file additional reports to American regulators: 23 in total for 2012. This is more than twice as much as in 2011 and more than four times as much as in 2010. The alarming growth rate in applications to regulators is in line with the increased investment, but it has some worried that the growth in regulation appears to be outpacing the growth in investment. China is now the country that filed the most with American regulators, passing the United Kingdom for the first time this past year.
The data come from a report issued by the Committee on Foreign Investment in the United States, a group run by the Treasury Department. Recently, the group has attempted to stop the Chinese acquisition of a group of wind farms that are close to an American naval facility. However, the committee gave the green light to the Chinese pickup of Smithfield Foods, the largest producer of pork in the world, despite concerns over food safety from some advocacy groups that were worried about future quality of the meat.