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from the putting-all-your-neweggs-in-one-basket dept.
Submitted via IRC for TheMightyBuzzard
The Wall Street Journal's earlier report about an expected record-setting 2016 in regards to chinese investment in the United States was right. Newegg Inc., one of the most popular online tech-related retailers, is now reportedly owned by chinese company Hangzhao Liaison Interactive Information Tech...
The Wall Street Journal's earlier report about an expected record-setting 2016 in regards to chinese investment in the United States was right. Newegg Inc., one of the most popular online tech-related retailers, is now reportedly owned by chinese company Hangzhao Liaison Interactive Information Technology Co., Ltd. (Liaison Interactive).
After September's reports of a significant investment from the Chinese company on Newegg, which would allow the California-based company to "accelerate the pursuit of the company's strategic initiatives" and into high-growth markets such as eSports, VR (Virtual Reality) and AR (Augmented Reality), it now appears that the investment was much more than a simple capital infusion: it was a bid towards controlling an effective majority in the American company's shares.
Source: https://www.techpowerup.com/226777/newegg-now-owned-by-chinese-company
(Score: 1, Interesting) by Anonymous Coward on Monday October 17 2016, @12:27AM
It sort of reminds me when Japan was flying high -- selling chips, cars and other high value goods to USA. They were buying up US real estate and all kinds of things and paying big premiums. Then there was a crash and they had to sell it all at bargain prices...in some cases I think the sales were back to the original owners. Joke was on Japan...
I wonder if that process can repeat? On the one hand, wealthy Chinese appear to be really anxious to get invested outside China, this part is same as Japan. On the other hand, maybe they have so much money and so much business in the Chinese domestic market (many times larger than Japanese domestic) that they won't be forced to sell USA assets if there is a recession or other business crash. Maybe these wealthy Chinese can just ride it out?
(Score: 0) by Anonymous Coward on Monday October 17 2016, @03:13AM
They are putting money into things in most cases. Not debt. No debt no problem, you wont be forced to sell if the price drops.
Think of it as another buffer like the last time American banks blew up and needed Chinese money to bail them out long enough for the Fed to step in.
(Score: 0) by Anonymous Coward on Monday October 17 2016, @05:55PM
> They are putting money into things in most cases.
That depends on who "they" is.
Individuals? You are probably right.
But China's real estate bubble is financed by massive, massive public debt. Crazy levels of debt. I don't know how China is going to get out from under that, inflation is the obvious answer but there are lots of obvious problems with that too.