ANNUAL REPORT

61
on the future of U.S.-China relations” and negatively impact Chinese
commerce. 196 In the letter, U.S. business representatives also cited
the key role nonprofit organizations such as universities and trade
associations play in their operations, calling them an “integral part”
of their business practices. 197 Nevertheless, not every U.S. industry
organization has stated that the law will have a negative effect on
U.S. companies. For instance, the president of the US-China Business
Council commented that the new law will have a relatively minor
impact on U.S. industry compared to other concerns businesses
have in China, noting, “By and large, American companies will not
be impacted by the NGO law; companies are more directly impacted
by the market access and level playing field concerns.” 198
Chinese Investment in the United States
While Chinese investment remains a small percentage of total
inward FDI in the United States,* it is rising rapidly, driven by the
Chinese government’s “going out” strategy, capital flight, and a generally
more open policy environment for outbound investment. 199
A more pronounced slowdown in economic growth has also spurred
Chinese investment abroad as Chinese companies seek to diversify
their investments. 200 Chinese investment in the United States grew
to a record $15 billion in 2015 from $11.9 billion in 2014, according
to data from Rhodium Group. 201 In 2016, Chinese FDI appears set
to surpass 2015’s record, with at least $30 billion worth of deals in
the pipeline (see Table 4). 202
Table 4: Notable Chinese Bids and Acquisitions of U.S. Companies,
2015–2016
Chinese Buyer
U.S. Target
Price
(US$
billions)
Status
Industry
AVIC Auto; Bohai
Harvest RST
(BHR)
Henniges
Automotive
$0.60
Deal
closed,
Sep. 2015
Automotive
Fosun
International Ltd.
Ironshore Inc. $1.84
Deal
closed,
Nov. 2015
Financial
services
Dalian Wanda
World
Triathlon
Corp.
$0.65
Deal
closed,
Nov. 2015
Sports
PRC Law on the Management of Foreign Non-Governmental Organizations’ Activities within
Mainland China”; ChinaLawTranslate.com, “Changes Anticipated in the New FNGO Law.”
* This section relies on private estimates of Chinese FDI in the United States. Both U.S. and
Chinese official statistics underestimate the volume of Chinese investment because they do not
fully account for flows of FDI, including investment routed through Hong Kong and other offshore
financial centers. Official data are also provided after a significant delay, hindering analysis. For
example, as the International Trade Administration (ITA), a bureau within the U.S. Department
of Commerce, stated in a 2013 report, estimates from Rhodium Group showed $6.5 billion of
FDI flows from China to the United States in 2012, while U.S. government estimates showed
only $219 million for the same year. ITA noted that private sector valuations employ different
definitions of FDI, data gathering mechanisms, and accounting methods that lead to differences
in reported value of investments. U.S. Department of Commerce, International Trade Administration,
Report: Foreign Direct Investment (FDI) in the United States from the China and Hong
Kong SAR, July 17, 2013.