© AFP / by Jocelyne Zablit | The $1 billion condominium and hotel
development dubbed Fig Central
is being built by Beijing-based Oceanwide
Holdings near the Staples Center in Los Angeles
From real estate, to high-tech firms to entertainment giants, Chinese investments in the United States, notably California, are moving at a dizzying pace and are on course to smash records again this year.
Chinese companies shelled out a record $15 billion last year in the US and that figure could more than double in 2016, according to research firm Rhodium Group and the National Committee on US-China Relations.
California, especially the San Francisco Bay Area and Los Angeles, has been at the forefront of China's appetite to invest overseas, with billions of dollars going into the technology, renewable energy and entertainment sectors, and increasingly into real estate.
China has pumped $8 billion into California businesses since 2000, more than in any other state, a recent Rhodium Group study said.
It added that there were 452 Chinese-owned businesses that employed more than 9,500 people in the Golden State as of the end of last year, among them the online commerce giant Alibaba Group and the Internet company Tencent Holdings Ltd.
- Buying spree -
Cash is also flowing into Hollywood, with the Beijing-based Wanda Group paying $3.5 billion earlier this year to acquire the film studio Legendary Pictures, the largest-ever cultural takeover by China.
The buying spree is showing no signs of abating for the foreseeable future, experts say, despite tumult in China's economy and mounting rhetoric during the US presidential campaign.
"Chinese investment in the US -- and California in particular -- will almost certainly multiply in the coming years," said Matt Sheehan, who consults and writes about Chinese investment in the Golden State and whose forthcoming book is entitled "Chinafornia."
While the political climate isn't helping, cities across America are welcoming Chinese investments with open arms, drowning out the campaign rhetoric and anti-China sentiment in Congress.
"If the domestic Chinese economy continues to boom, firms will have the loose cash to make strategic investments and vanity purchases abroad," said Sheehan.
"If the Chinese economy and RMB currency go into a nosedive, you'll likely see a large capital flight disguised as overseas investment."
One sector increasingly on the Chinese shopping list in the US is real estate, with buyers snapping up expensive homes and high-end commercial properties at a record pace.
Chinese investors pumped nearly $11 billion into US real estate in the first five months of 2016, outpacing last year's total of $4.37 billion, according to a report by real estate firm Cushman & Wakefield.
- Changing skyline -
The West Coast has proven a major draw with Chinese investments literally changing the skylines of downtown Los Angeles and San Francisco.
Of the four mega development projects currently underway in Los Angeles, three are by Chinese firms, including a $1 billion condominium and hotel development by Beijing-based Oceanwide Holdings and a similar project -- Metropolis -- by Shanghai-based Greenland Holding Group....MORE
