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Laxman Pai, Opalesque Asia: While US President Donald Trump stands by China lab origin theory for the virus, Chinese companies have upped the ante to acquire or invest in distressed foreign assets in strategic locations.
Against this backdrop, governments across several nations are now concerned about this move by China, says research by GlobalData.
Several media reports also suggest that there has been a growth in Chinese companies seeking proposals for targets from banks, even as the COVID-19 pandemic continues to affect the global economies and businesses.
From January to April 2020, 57 Chinese outbound M&A deals worth US$9.9bn, and 145 Chinese outbound investments worth US$4.5bn were announced.
The key M&A target destinations for Chinese firms included Hong Kong, the US, the UK, Germany, France, Canada, and India. The key investment destinations during the period included the US, India, the UK, Hong Kong, Japan, France, Germany, South Korea and Australia.
Aurojyoti Bose, the Lead Analyst at GlobalData, said: "Chinese companies' acquisition of distressed foreign assets at a much cheaper price during COVID-19 pandemic remains an area of concern with governments across several countries tightening their foreign direct investment (FDI) policies."
According to the data and analytics company, the European Union was among the forerunners in tightening scrutiny of foreign investments. Germany, Spain, France, and Italy have already brought in rules to protect...................... To view our full article Click here
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