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Tips for Chinese investors abroad
By Dennis Unkovic |
October 20, 2009, Tuesday
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Print Edition
Print Edition
WHILE China is known as a top destination for investors, it is now positioned to emerge as the premier acquirer of companies, technologies, national resources and real estate around the world.
What makes this new image possible is the US$2.4 trillion in foreign currency reserves that China has accumulated over the last three decades.
Back in the 1980s, Japanese investors went on a buying spree in the United States - and made fatal mistakes.
China must avoid the types of blunders Japan made if it expects its investments to be profitable over the long term.
One major mistake of Japanese investors was to buy famous American landmarks and properties that returned little value over time.
For example, the Japanese became infamous for purchasing golf courses like Pebble Beach in California and real estate such as Rockefeller Center in New York City. The American public's resentment resulted in "Japan bashing." Chinese investors must avoid this kind of backlash.
Having advised and worked with investors around the world for over 30 years, I have identified the "top 10" basic lessons that Chinese investors in America should remember (See my book "The Art of Investing in America - Secrets to Success").
Here's a quick look at some of the lessons.
Buying American real estate may not only incur backlash, but also other risks - those associated with American laws and regulations.
For example, if a Chinese investor purchases a parcel of land in America that has serious environmental violations, the Chinese investor is legally responsible for resolving the situation - even if the problem existed prior to its purchase.
(The author is a partner of Meyer, Unkovic & Scott LLP. The views expressed are his own. Shanghai Daily condensed his article.)
What makes this new image possible is the US$2.4 trillion in foreign currency reserves that China has accumulated over the last three decades.
Back in the 1980s, Japanese investors went on a buying spree in the United States - and made fatal mistakes.
China must avoid the types of blunders Japan made if it expects its investments to be profitable over the long term.
One major mistake of Japanese investors was to buy famous American landmarks and properties that returned little value over time.
For example, the Japanese became infamous for purchasing golf courses like Pebble Beach in California and real estate such as Rockefeller Center in New York City. The American public's resentment resulted in "Japan bashing." Chinese investors must avoid this kind of backlash.
Having advised and worked with investors around the world for over 30 years, I have identified the "top 10" basic lessons that Chinese investors in America should remember (See my book "The Art of Investing in America - Secrets to Success").
Here's a quick look at some of the lessons.
Buying American real estate may not only incur backlash, but also other risks - those associated with American laws and regulations.
For example, if a Chinese investor purchases a parcel of land in America that has serious environmental violations, the Chinese investor is legally responsible for resolving the situation - even if the problem existed prior to its purchase.
(The author is a partner of Meyer, Unkovic & Scott LLP. The views expressed are his own. Shanghai Daily condensed his article.)
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