Following the Money Chinese OFDI in the United States and Europe - - PowerPoint PPT Presentation
Following the Money Chinese OFDI in the United States and Europe Thilo Hanemann Research Director thanemann@rhg.com Tsinghua University | Beijing | September 23, 2013 10 East 40 th Street, Suite 3601, New York, NY 10016 Tel:
Chinese FDI I Tsinghua University 1 10 East 40th Street, Suite 3601, New York, NY 10016 Tel: +1.212.532.1158 | Fax: +1.212.532.1162 | Web: www.rhgroup.net Address: 5 Columbus Circle, 18th Floor, New York, NY 10019 | Tel: +1.212.532.1158 | Fax: +1.212.532.1162 | Web: www.rhg.com
Research Director thanemann@rhg.com
Chinese FDI I Tsinghua University 2
Source: UNCTAD, Rhodium Group.
0% 5% 10% 15% 20% 25% 30% 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
UNITED STATES JAPAN
HONG KONG
CHINA
GERMANY
FRANCE INDIA
Chinese FDI I Tsinghua University 3
Source: MOFCOM, IMF, Bloomberg, Thomson Reuters, *transactions ending in final stake of 10% or more.
Hong Kong, 27% United Kingdom, 10% Australia, 9% Brazil, 8% Canada, 7% US , 6%
Switzerland , 4%
South Africa, 3% Singapore , 3% All other , 23% Hong Kong, 62% British Virgin Islands, 7% Cayman Islands, 5% Australia, 3% Singapore , 2% US, 2% Rest of World, 19% Hong Kong 76% Singapore 5% Mauritius 3%
Luxembourg 3%
Australia 3% Canada 2% All Others 8%
MOFCOM (2011): $425 BN 87 CDIS ECONOMIES (2011): $510 BN M&A (2000-2012): $252 BN
Chinese FDI I Tsinghua University 4
Source: Rhodium Group
INSTITUTION DATABASE GEOGRAPHIC FOCUS COVERAGE Heritage F Foundation China Investment Tracker Global Non-Bond Investments over $100 million A-Capital Dragon Index Global M&A and some unexplained residual TA TAC ChinaObs/FDI Monitor Europe M&A and greenfield transactions Antwerp M Management School Euro-China Investment Report Europe Chinese companies Univ niversity of
dney Demystifying Chinese Investment Australia M&A transactions Rhodium G Group China Investment Monitor United States and Europe M&A and greenfield transactions
Chinese FDI I Tsinghua University 5
Source: Rhodium Group.
3.7 9.5 13.5
2 4 6 8 10 12 14 16
FDI Stock (2011) FDI Stock, UBO (2011) FDI Stock (2011)
US BUREAU OF ECONOMIC ANALYSIS CHINA'S MINISTRY OF COMMERCE
Chinese FDI I Tsinghua University 6
Source: Rhodium Group. 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
10 20 30 40 50 60 70 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Investment in M&A Deals (RHS) Investment in Greenfield Projects (RHS) Number of M&A Deals (LHS) Number of Greenfield Projects (LHS)
Chinese FDI I Tsinghua University 7
Source: Rhodium Group.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Chinese FDI in the United States Chinese FDI in the EU-27
Chinese FDI I Tsinghua University 8
Source: Rhodium Group.
OIL & GAS
AVIATION
AUTO PARTS
COMMUNICATIONS EQUIPMENT
ELECTRONICS
SEMICONDUCTORS
MEDICAL EQUIPMENT
INDUSTRIAL MACHINERY
METALS RENEWABLE ENERGY
SOFTWARE & IT
BUSINESS SERVICES
FINANCIAL SERVICES
UTILITIES ENTERTAINMENT & HOSPITALITY
REAL ESTATE
1,000 2,000 3,000 4,000 5,000 6,000 10 20 30 40 50 60 70 Total al I Inves estmen ent Val alue Num umbe ber of
eals
PRIMARY SECONDARY TERTIARY BUBBLE SIZE INDICATES TOTAL INVESTMENT VALUE
Chinese FDI I Tsinghua University 9
Source: Rhodium Group.
1,000 2,000 3,000 4,000 5,000 6,000 7,000
Semiconductors Business Services Healthcare and Medical Devices Electronics and Electronic Parts Hospitality and Tourism Other Transportation Equipment Pharmaceuticals and Biotechnology Aerospace Equipment and Components Financial Services and Insurance Software and IT Services Renewable Energy Real Estate IT Equipment Food Processing and Distribution Metals and Minerals Transportation Services Entertainment, Media and Publishing Chemicals Consumer Products and Services Automotive Equipment and Components Industrial Machinery and Tools Utilities Coal, Oil and Gas
US EU
Chinese FDI I Tsinghua University 10 10
Source: Rhodium Group.
Chinese FDI I Tsinghua University 11 11
Source: Rhodium Group; * Source provinces coded by headquarter of the investing company.
PRIV 72% SOE 28% PRIV 37% SOE 63%
DEAL VALUE
Chinese FDI I Tsinghua University 12 12
Source: Rhodium Group. 1,000 2,000 3,000 4,000 5,000 6,000 7,000
5,000 10,000 15,000 20,000 25,000 30,000 35,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Investment in M&A Deals, USD mn (RHS) Investment in Greenfield Projects, USD mn (RHS) Total Jobs (LHS)
Chinese FDI I Tsinghua University 13 13
Source: Rhodium Group.
YEAR ACQUIRER TARGET STATUS 1990 China National Aero Tech Mamco Manufacturing Blocked by President 1995 CNIEC/Hua San/Sextant Magnequench Completed Lenovo IBM Completed Haier Maytag Withdrawn, Commercial Reasons CNOOC Unocal Withdrawn, Politicized Minsheng Bank UCB Blocked by Federal Reserve Huawei 3Com Withdrawn after CFIUS Review Tengzhong Hummer Withdrawn after MOFCOM Intervention Northwest Nonferrous Intl. Firstgold Withdrawn after CFIUS Review Anshan Steel Greenfield, Mississippi Pending Tangshan Caofeidian Emcore Withdrawn after CFIUS Review China Aviation Ind. Cirrus Completed Huawei 3Leaf Dissolved after CFIUS Review Ralls Corporation Terna Energy Holding USA Corp. Blocked by President Beijing Superior Aviation Hawker Beechcraft Inc. Withdrawn, Commercial Reasons Wanxiang Group A123 Completed Shuanghui Smithfield Foods Pending 2013 2005 2009 2010 2011 2012