China tipped to spend $1.5tn on overseas buys

Chinese acquirers will spend $1.5 trillion (€1.28tn) buying companies and investing overseas in the next decade, 70% more than the previous 10 years, even as regulators at home and abroad block deals, multinatonal law firm Linklaters has said.

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 specialises in advising on mergers and acquisitions — said in a report. Chinese buyers have spent about $880bn on assets in other countries in the last 10 years, according to the data.

The success of China’s bidders will depend on their ability to overcome foreign countries’ concerns about national security and interest, which contributed to the failure of as much as $75bn in announced outbound deals last year, Linklaters said in the report. China may also have to bow to international pressure to liberalise its markets, it said.