01 /Chinese State-influenceOverall, our Radar shows that in 16% of the investments included in the research the risk of Chinese state influence is high. These investments are represented on the map by red dots, and imply that the ultimate controlling shareholder is a Chinese governmental institution or a state-owned-entity (SOE). Additionally, in 9% of the investments, the risk of state influence is categorised as medium (orange dots on the map). In these cases, the Chinese government has substantial influence, but might not necessarily be seen as controlling. Finally, the majority of the acquisitions shows low risk of state influence (yellow dots). Therein, the Chinese state has no substantial influence in the acquiring company.
02 / SectorsThe sector in which we can see the highest number of transactions is health & biotechnology. Other important sectors include real estate & hospitality, ICT, energy, and machinery & manufacturing. Many of these sectors are fundamental for reaching the goals of the Chinese national strategy Made in China 2025, aimed at reaching independence in R&D and manufacturing in strategic industries, including high-tech, new energies, and biotechnologies.
03 / StatesIn some US states there is a higher concentration of investments with high risk of Chinese state influence. For example, in Michigan and Illinois, almost half of the investments we scanned are labelled as medium or high risk. These include acquisitions in strategic sectors, such as automotive and machinery.
04 / DivestmentsOur dataset shows an increase of investments in the early 2010s. However, since 2016 there has been a sharp drop in new investments. At the same time, 16% of the investments we tracked have been divested again, and are hence no longer in Chinese ownership (as of November 2022). This trend is largely driven by policy changes within China.