A few comments on the story below.
This is just the start of a wave of acquisitions by Chinese firms in the West as the FX reserves accumulated in the Asian Central Banks wash back up on the shores of the developed world.
Geely, a Chinese car company worth $200m USD bought out Volvo for $2 Billion USD. The money of course was fronted by the local government. The former parts units of GM, which still operates several manufacturing sites in Michigan and Ohio are now owned by the Beijing city government. One of these companies, the former Saginaw Steering Gear made machine guns for the American army in WW2, now they have been bought by Beijing.
Everyone is aware that China is rolling over their trade surplus money as well as the printed money they create to keep the USD/RMB peg and buying hard assets. But there is not enough investment to wash up all of this cash, the next focus will be buying real companies in the West with IP. They will convert these reserves ever so slowly into real assets in the developed world, not just commodities.
For decades , Asia has performed the role of diligent worker bee. Without a history of Adam Smith and free trade they saw how easy it was to game the free trade system. To this day, Koreans do not buy Japanese goods and Japanese do not buy Korean goods. Neither one will buy U.S. goods. The stuff they do want , like Hollywood movies, they just take. The U.S. took the brunt of the free trade economic carnage as over 50,000 factories have closed down in only the last ten years. No one can labor arbitrage and transfer price their taxes away like corporate America. We are still #1 in that game.
As the Fed printed money, giant speculative asset pricing bubbles occurred. The U.S. got lazy on their housing bubble and focused on the military industrial complex. Once mighty titans GE and GM became housing lenders with “old world” businesses attached to provide cash-flow for the financing sides of the business. Everyone drank the kool-aid.
Now drink this kool-aid, even printing money is no longer an option for the U.S. government. China will print to keep the RMB peg…and combined with the $3.2 trillion in FX reserves they could buy most of the S&P 500 companies. Japan is also printing money like there is no tomorrow. Facing economic carnage in their own country, they are bound to start acquiring Western firms to compete with China. The U.S. now faces defaulting on their debt quickly or becoming a sharecropper to Asia.