Really interesting article from the New York Times about the national security implications of foreign direct investment from China. US national security and FDI issues will only grow as China’s economy continues to advance and Chinese companies look globally, particularly to the US, for growth opportunities. Below is a quote from Duncan Clark excerpted from the article.
“It basically reflects what I think is a growing challenge for Chinese companies as they seek to expand globally: they are bumping into a glass ceiling — how the Chinese government behaves and is perceived internationally.”–Duncan Clark, BDA China.
While Clark makes a good point about how China is perceived is in a large part dictated by how it acts in the world, it is also important to note that the issue of corporate transparency in China is also significant concern. Since most FDI is through mergers and acquisition, corporate transparency from all companies involved is key to success.