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22
Chapter 3: China’s Investment in the United States
In 2007, foreign acquisitions of American companies totaled $407 billion, an
increase of 93% from the previous year.34 Although Canada, Britain, and
Germany topped the list of foreign investors, China is becoming an increasingly
important player. According to the U.S. Treasury, China’s U.S. equity portfolio
holdings increased from $1.4 billion in 2000 to $4 billion in 2006, and
subsequently swelled to $93 billion in early 2010. According to Dealogic, a
provider of financial data, Chinese acquisitions of equity stakes in U.S.
companies reached $3.9 billion in 2009, climbing past the minimal levels seen a
few years ago.
3.1 Reasons For China’s Investment in the United States
3.1.1 Securing Resources to support Economic Expansion
Some critics have pointed out that China’s main overseas investments have been
in the energy and mineral sectors—an indication that China is merely trying to
secure resources essential to its economic expansion. After the hostile reception
the Chinese encountered in CNOOC’s purchase of Unocal, Chinese oil
companies have been looking to invest elsewhere: Canada, Australia, Ecuador,
Sudan, Venezuela, Kazakhstan, and Russia. The state-owned China National
Petroleum Corporation has oil and gas assets in 22 countries, while Chinese
34 Ariana Eunjung Cha, “Weak Dollar Fuels China’s Buying Spree of U.S. Firms;
Foreign Cash Ignites Political Concerns,” The Washington Post (28
January 2008) A1.
Object Description
| Title | China's investment in the United States and the public relations implications: A case study of the Lenovo-IBM acquisition |
| Author | Liang, Shuyan |
| Author email | shuyanliang.usc@gmail.com; shuyanli@usc.edu |
| Degree | Master of Arts |
| Document type | Thesis |
| Degree program | Strategic Public Relations |
| School | Annenberg School for Communication |
| Date defended/completed | 2011-04-30 |
| Date submitted | 2011 |
| Restricted until | Unrestricted |
| Date published | 2011-05-04 |
| Advisor (committee chair) | Kotler, Jonathan |
| Advisor (committee member) |
Floto, Jennifer Wang, Jian (Jay) |
| Abstract | This paper discusses Lenovo’s acquisition of IBM’s personal computer division in 2005 as a case in point to explore issues involved in China’ investment in the United States, particularly its public relations implications. It is demonstrated that media coverage underscored the complications and tensions in these supposedly free market activities. This paper presents the manifestation of controversial issues such as state-ownership of businesses, national security, and economic protectionism, as Chinese enterprises invest in the United States through mergers and acquisitions. It provides an account of Lenovo’s communication strategies and gives suggestions to better manage corporate reputation and brand images for Chinese companies that are seeking overseas investment. |
| Keyword | Lenovo; IBM; China; United States; foreign direct investment (FDI); mergers and acquisition (M&A); public relations (PR) |
| Geographic subject (country) | China; USA |
| Coverage date | 2005/2010 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m3902 |
| Contributing entity | University of Southern California |
| Rights | Liang, Shuyan |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | cisadmin@lib.usc.edu |
| Filename | etd-Liang-4567 |
| Archival file | uscthesesreloadpub_Volume32/etd-Liang-4567.pdf |
Description
| Title | Page 29 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 22 Chapter 3: China’s Investment in the United States In 2007, foreign acquisitions of American companies totaled $407 billion, an increase of 93% from the previous year.34 Although Canada, Britain, and Germany topped the list of foreign investors, China is becoming an increasingly important player. According to the U.S. Treasury, China’s U.S. equity portfolio holdings increased from $1.4 billion in 2000 to $4 billion in 2006, and subsequently swelled to $93 billion in early 2010. According to Dealogic, a provider of financial data, Chinese acquisitions of equity stakes in U.S. companies reached $3.9 billion in 2009, climbing past the minimal levels seen a few years ago. 3.1 Reasons For China’s Investment in the United States 3.1.1 Securing Resources to support Economic Expansion Some critics have pointed out that China’s main overseas investments have been in the energy and mineral sectors—an indication that China is merely trying to secure resources essential to its economic expansion. After the hostile reception the Chinese encountered in CNOOC’s purchase of Unocal, Chinese oil companies have been looking to invest elsewhere: Canada, Australia, Ecuador, Sudan, Venezuela, Kazakhstan, and Russia. The state-owned China National Petroleum Corporation has oil and gas assets in 22 countries, while Chinese 34 Ariana Eunjung Cha, “Weak Dollar Fuels China’s Buying Spree of U.S. Firms; Foreign Cash Ignites Political Concerns,” The Washington Post (28 January 2008) A1. |
