Growing Chinese Properties in United States

There was a decade-long tradition in America that whenever The United States president visited New York, he would stay at The Waldorf Astoria Hotel. But in 2014, President Obama refused to stay there citing security reasons. At that time, a Chinese company bought that hotel for about two billion dollars. This is an example of China’s extraordinary example of investment in the US.

China invests billions of dollars annually in the US, the clearest examples of which can be found in New York where a sixty-story 28 Liberty Street also known as Winches Plaza in 

the financial district of Manhattan. And Baccarat Hotel is now owned by Chinese Companies or citizens. 

Chinese investors also have shares in the General Motors building. New York skyscrapers have a reputation for buildings. In 2014, the Bank of China bought a skyscraper in Central New York for fifty dollars. The most prominent name among investors in the US is a Chinese billionaire woman named Youngz. Her family bought 60% shares of a 14 story Park Avenue Plaza in 2011.

Whereas in 2013, she bought 40% shares of General Motors Building along with Chinese investors. The HNA Group is the second biggest name of Chinese investment in the US which has invested billions of dollars in real estate in Chicago and other cities in New York St. France, not only real estate, Chinese investors have invested billions of dollars in other sectors as well. 

In 2012, the Chinese Wanda Group bought the American AMC Entertainment Company for two billion and 60 crore dollars. And the world’s biggest cinema became China’s property. However, this group sold the majority shares of AMC in 2021. Similarly, some Chinese investors also bought the shares of Macbemon’s filmmaker for 3.5 billion dollars. The highest investment in America by Chinese investors was in 2018 whose volume was 45 billion and 60 crore dollars. 

However, Chinese investment in America has started to decrease since 2000 and it was at a time when the wealth and income of China and its citizens were growing rapidly. But the pace of National Development was slowing down. Chinese investors got this fear. If this continues, the value of Yuan could fall and the monetary value of its assets inside China would also decrease, so Chinese investors would start buying assets outside of China. Transfer of money from Chinese bank accounts to real estate and companies abroad increased. 

The Chinese government is concerned that this withdrawal of capital from the country’s economy will increase pressure on the currency and its value will drop. The Government has also begun encouraging Chinese investors to withdraw their money in addition to taking drastic measures to curb the capital flow. The government focused on major four private business groups, HNA, Onbang insurance, FOSUN international, and Danyan Wanda Group. In the beginning, we mention the word Story Hotel in New York. It was bought by China's Anbang Group and they spent billions of dollars on purchasing these high level properties around the world. 

In 2018, the Chinese government took over the company and arrested their chairman which means the border of the Astoria Hotel is now owned by the Chinese government. Hanian airlines and the HNA group is named after this which started with a small airline in 1993 , but now this group is investing heavily in hotel, tourism, and real estate worldwide. HNA was the world's 17th largest company in 2017 and its annual revenue was 50 billion dollars. 

In the same year, the HNA group bought 100% shares of Radisson Hotel which were sold to Gemming International Holdings after one year in 2018. In addition, HNA Group bought 245 Park Avenue Plaza in New York for two billio n and twenty crore dollars. It was the most expensive office building sale in New York history. This group bought six and half billion dollars shares in Hilton Hotel and 3% shares of Deutsche bank. There are indications that cold-carrying companies abroad are facing pressure from the Chinese government. 

According to Wall Street General’s news on August 19, 2018, Chinese Anbang Group puts a 5.5 billion dollars luxury hotel portfolio on the block. Similarly, writers from a magazine reported on October 9, 2018, that the HNA group intended to sell the property worth 11 billion dollars. The New York Post’s October 9, 2018 publication stated that in liberty to sell his shares for a crore dollars. America has also made foreign investment difficult by justifying national security. 

When China's Alibaba group tried to buy money through its subsidiary company and finance, the US government stopped the deal. HNA also abandoned the intention to acquire Sky Bridge Capital. American and Chinese investors are also withdrawing due to trade tensions, and China's investment in America reached a level it was ten years ago. Let's see if this investment falls further or the chances of growth come up again.