Tannet reads from China Daily that Chinese outbound investment is forecast to reach $1.5 trillion during the coming decade, a 70 percent increase on its level during the period 2007-16.
The report identified key Chinese policies, including Made in China 2025, and the Belt and Road Initiative, as major driving forces for continued growth in Chinese outbound deals, although it warned that Chinese acquirers should approach deals strategically in the face of regulatory tightening overseas.
William Buckley, a partner at Linklaters, said: "Despite increasing regulatory scrutiny of Chinese outbound M&A by foreign governments, and calls for greater reciprocity, there is a definite Chinese desire to pursue the right deals abroad."
The German and US government blocked the deal by arguing that Chinese companies had been buying up overseas enterprises that have strategic technologies, without allowing similar purchases to be made of Chinese companies. Aixtron makes devices that produce crystalline layers based on gallium nitride, which are used as semi-conductors in weapons systems.
China's Foreign Ministry called the reason to block the deal "groundless accusations" against Chinese companies made by the US, and lamented the "politicization" of a commercial takeover.
The ministry's spokesman, Lu Kang, said: "We hope the US side can stop making groundless accusations against Chinese companies and provide a fair environment and good conditions to Chinese investments."
In response to this increased government control, Linklaters is suggesting to clients that they conduct "early dialogue and engagement with regulatory authorities, as well as government agencies, particularly in sensitive sectors".
The report identified a trend in which Chinese outbound deals in the US during the Obama years received greater scrutiny, especially in sectors involving critical technologies, and pointed out that further tightening may occur under the Trump administration. (Source: China Daily)
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