As the One Percent and their puppet politicians continue to hollow out the USA, leaving a dying shell, the Chinese continue to buy up the few remaining morsels.
In the first three months of 2016, Chinese buyers plan to spend $39 billion buying U.S. companies. Last year (2015) they spent only $9.4 billion buying U.S. companies.
A big buyer is Anbang Insurance Group, which was founded just 12 years ago, and made a splash in New York City with its $2 billion purchase of the Waldorf Astoria Hotel. Since then, Anbang Insurance has acquired companies in Belgium, the Netherlands, Iowa and South Korea. Anbang aims to become one of the “top 10 comprehensive financial groups in the world,” its website says.
Chairman Wu Xiaohui rarely talks to reporters, or appears in public. He got his start in the rental car business before founding Anbang in 2004. Since then, the company has expanded to more than 3,000 branches with 30,000 employees worldwide serving 35 million clients. It has diversified into life insurance, banking, asset management, leasing, and brokerage services.
Below are some recent Chinese acquisitions…
Normally when the Chinese want to buy a U.S. asset, they must get permission from the Committee on Foreign Investment in the United States (CFIUS). This group is chaired by the U.S. Treasury Secretary, and includes representatives from sixteen U.S. departments and agencies, including the Defense Dept., State Dept., Commerce Dept., Homeland Security Dept. and so on.
Potential foreign acquirers must file for a national security review. In 2014, there was a record high of 147 filings, up from 97 in 2013. The most filings were by China with 24. Next was Britain with 21, and next was Canada with 15.
Once a filing is made, the CFIUS can decide to do nothing, or investigate to see if the transaction poses a “national security” problem. In 2014, there was a record high of 51 investigations, fully a third of all filings. After an investigation, if CFIUS finds that the transaction has a national security issue, it will make a recommendation to the U.S. President, who can then decide to block the deal.
But CFIUS rarely gets that far. There has been only one presidential action to block a transaction in the last five years. In 2012 Obama ordered the Ralls Corporation (owned by the Chinese Sany Group) to divest itself of four small wind farm projects because they were located too close to a U.S. Navy weapons systems training facility in Boardman, Oregon.
What typically happens is that CFIUS signals to the acquirer that it will recommend against the transaction. Usually the acquirer will withdraw the transaction to avoid the public stain of a full presidential action. That’s what happened when Tsinghua Unisplendour Corporation of China wanted to buy a fifteen percent stake in computer hard drive maker Western Digital for $3.78 billion. When CFIUS said they would review the deal, the Chinese withdrew their offer (23 Feb 2016).
The China National Chemical Corporation paid $43 billion to acquire Syngenta, a Swiss giant in farm chemicals and seeds, with big operations in the United States. CFIUS reviewed this because the Monsanto Corporation complained about possible competition. The market is betting that CFIUS will require the Chinese to divest Syngenta’s American operations and technology.
From this we see that “national security” concerns can mean that the Chinese are too close to U.S. military technology, or else (more commonly) some powerful company like Monsanto doesn’t want its monopoly to have any competition. (Welcome to the “free market.”)
Chongqing Casin Enterprise Group of China wants to buy the Chicago Stock Exchange. The U.S. One Percent are squawking about this. It is one thing for the Chinese to buy out what little remains if U .S. manufacturing, but when the Chinese want to penetrate the U.S. financial sector, the One Percent squeal.
Forty-five members of Congress have sent a letter to CFIUS asking the committee to block the deal.
Still, CFIUS approves most acquisitions, even Chinese ones, and the number keeps rising.
What this means is that the U.S. Empire is being hollowed out by its own greed and selfishness. The One Percent are sucking the life out of everything in the USA and abroad. And their slaves cheer it on, opening the door for foreigners to acquire whatever is left standing.
(But it’s okay for Communist China to buy out the USA.)