‘SYSTEMIC INEQUITIES’:The new norm for China and the US is to be at odds on trade issues, including the steel industry, Hogan Lovells partner Roy Zou said
Date: Jul 31, 2017
By: Reuters, HONG KONG
US corporate acquisitions in China collapsed to their lowest level for 14 years in the first half of this year, as trade tensions between the two countries and uncertainty about Chinese government regulations took a toll on dealmaking.
The value of mergers and acquisitions involving US companies in China dropped 32 percent to US$523 million in the six months to June 30 from US$771 million in the same period last year, and were down 87 percent from US$4 billion in the first six months of 2015, according to Thomson Reuters data.
Bankers and lawyers involved in dealmaking say that increasing signs of trade friction between Washington and Beijing are acting as a deterrent.
The tensions were reflected at a meeting earlier this month when officials from the two countries failed to agree on steps to reduce the US trade deficit with China.