China Will Spend $1.5 Trillion on Foreign Companies in a Decade: Report

  • Manufacturing and infrastructure investment to spur dealflow
  • Outbound deals will have to overcome caution from regulators
Photographer: Johannes Eisele/AFP via Getty Images
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Chinese acquirers will spend $1.5 trillion buying companies and investing overseas in the next decade, 70 percent more than the previous 10 years, even as regulators at home and abroad block deals, Linklaters LLP said in a report Tuesday.

Government policies encouraging Chinese companies to invest in manufacturing capabilities, particularly for advanced technology, and international trade will help maintain deal flow, the law firm, which specializes in advising on mergers and acquisitions, said in the report. Chinese buyers have spent about $880 billion on assets in other countries in the last 10 years, according to the data.