Can China break down the United States economy? China purchases American and other foreign businesses to help sustain themselves
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China has been purchasing businesses from around the world, including America - but why?
LOS ANGELES, CA (Catholic Online) - Vikas Seth, the head of emerging markets in the investment-banking and capital-markets department at Credit Suisse told Business Insider: "With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth."
Such is their tenacity in purchasing companies, one group has managed to take over the Chicago Stock Exchange.
Forty-five members of Congress signed a letter to the Treasury Department's Committee on Foreign Investment in the US (CFIUS) in efforts to force a "full and rigorous investigation of [the] acquisition."
The main concern outlined in the letter is the lack of information the American market has about the Chinese group Chongqing Casin Enterprise Group (CCEG), which acquired the Chicago Stock Exchange, and the access it now has with American markets.
"This proposed acquisition would be the first time a Chinese-owned, possibly state-influenced, firm maintained direct access into the $22 trillion US equity marketplace.
Chinese groups have been purchasing several foreign businesses, though none is as important to America as the Chicago Stock Exchange.
Not all Chinese companies purchasing other businesses have their government's approval, but the majority of them are fully supported.
So what does this mean for the American economy?
Since Chinese businesses are acquiring American companies to help compensate for their country's lack of goods, it is possible that prices can increase in the United States to compensate for the extra shipping costs.
It is also possible that the jobs that are currently available to American citizens could be stripped away and outsourced, leaving fewer positions and an increase in the already sky-high unemployment rate.
Will Chinese business owners do right by the American people? Only time can tell.
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