Japanese, Chinese investment possibilities arise with Trump electionDecember 16, 2016
International investments from Asia could help to boost an already strong U.S. economy with President-elect Donald Trump’s announcement that Japanese telecom and internet conglomerate Softbank, who owns 80 percent of telecom company Sprint, could potentially invest $50 billion and create over 50,000 million jobs in the U.S within the next four years. Reports indicate that although the deal is being credited to his election by Trump himself, it was already in the investment pipeline as a portion of a $100 billion dollar investment in global technology industry, destined for U.S. start ups and speculated to include the development of multiple US factories. The deal also mentioned Foxconn, a major supplier for Apple’s Iphones, who’s role, although not confirmed, was reported to be responsible for the jobs and the additional $7 billion in investments.
Masayoshi Son, president of Softbank, favors Trumps election stating “he would do a lot of deregulation.” Son previously expressed interest in investing in the U.S. butfound the regulatory climate too harsh in past years and is now reportedly looking for further investment opportunities and favor for his U.S. business interests, including a possible Sprint/TMobile merger that was previously abandoned by after signs regulators would reject the plan.
Chinese investments could also reach the U.S. in the next few years as Trumps election has had immediate positive effect on the mainland Chinese investors. According to a survey from East-West Property Advisors, 53 percent of Chinese people are now more likely to invest in US. real estate than before the election. Those who favor a Trump presidency are keen on striking business deals that help build their wealth. U.S. lawmakers, however, are stanch critics calling for greater scrutiny of Chinese investments. Chinese acquisitions in America reached record levels totaling over $51 billion this year compare to $11.7 billion in 2015 and includes, major media and entertainment assets.
Chinese companies have acquired many businesses in the U.S. with activity almost exclusively in the past five years of the Obama presidency, researchers found. Deal making has risen so fast that China investment flows to the U.S. topped its intake from the U.S. in 2015 with activities driven by private firms such as Shanghai based Fosun group, who owns Wall Street’s 28 Liberty building and plans to invest heavily in the U.S. and join American firms. There is a growing list of developments supporting U.S.-China investment ties including HSBC bank who provides custody services for the first US-Based Renminbi qualified foreign institutional Investors for Blackrock fund advisor and General Electric who partners with Chinese companies across 34 joint ventures in China that manufacture everything from wind turbines to oil pipeline equipment.