An article titled ‘China Revs Up Its Dealmaking Machine’ says “The Chinese are in the midst of an M&A craze, doubling overseas investments last year. Could the deals benefit the global economy?”, and that “China’s total investments abroad, at $170 billion, come to only one-thirtieth the capital that the U.S. has spent on foreign factories, real estate, and other assets. But the Chinese have definitely been revving up their deal machine. China’s overseas investments doubled last year, to $52 billion, and the Chinese government’s economic planners have predicted a 13% increase this year, despite a slight slowdown last winter”.  The article goes on to talk about the author’s perception of Chinese lack of M&A experience, deal-doing and so on – read the article for yourself.  I see all that type of commentary as puffery.  I have a number of Chinese friends and acquaintances.  They are far from stupid.  I have said previously on this Blog and continue to believe that the Chinese will make many more strategic investments going forward, particularly in the resource sectors.  I believe that anyone that sells China’s interest in pursuing that course and the ability of the Chinese to do it in an economically sensible manner is in for a rude awakening.

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