According to a newly released report by Asia Society and Rhodium Group, “High Tech: The Next Wave of Chinese Investment in America”, Chinese investment in United States technology has topped $6 billion in the first quarter of 2014 alone.
Among the fifteen high-tech segments that were covered were: biotechnology, renewable energy, aerospace, IT services and equipment, and software.
So why the boom? The acquisition of technology, distribution channels, and other strategic assets to enhance long-term competitiveness are the main contributors to extraordinary first quarter profits. Also, market access and the desire of Chinese firms to increase the efficiency of their operations by accessing the talent base and advanced institutions in America (assets unique to America) play a part.
The whopping $6 billion worth of high-tech deals in the U.S. by Chinese investors marks a monument. That amount is more than the last five years combined.
These Chinese high-tech investors have had an undeniable impact on the United States economy. Over 25,000 jobs have been either created or sustained as a result of booming deals. 2014 is off to a great start with record-setting numbers, and the future looks bright. All in all, everyone involved will positively be impacted.