Chinese Cash Pours Into U.S. Real Estate

Chinese Cash Pours Into U.S. Real Estate

As China continues to its economic ascent, it has turned to investing in other countries such as the United States. Some of these investments have included real estate ventures, which is discussed in “Chinese Cash Pours into United States Real Estate” by the Wall Street Journal.  As discussed by Elliot Brown, the United States has become an attractive destination for Chinese foreign direct investment due to an anti-corruption campaign in China by President Xi Jinping, which has seen a more hardline approach to certain business practices in the country.  Therefore, investors have sought to look abroad.  Likewise, diversification due to a slowing real estate market has pushed Chinese investors to look for more options.

Several cash pouring investment projects are underway in the U.S., Forth giving are a few business deals.  China's $1 Billion investment aimed at the development of biotechnology research and development companies.  Chinese insurance companies invest $6.5 Billion in Strategic hotels and resorts Inc. As well as China's $3 billion investment in the Central Park Tower also known as the tallest apartment tower in the U.S.  China discovered they were able to generate increasing profits by sticking to investing in development projects versus buying into an already made company.

This topic of real estate highly interests me because I myself have considered a career involving real estate development and sales.  Whether real estate development is commercial or residential, it can be an important indicator of economic growth to opposing forces and serve as a profitable revenue source.

This topic is relevant to our marketing class because we have been studying improvement in decision-making processes with marketing information.  Relevance is also based on the need for investment developers to have an accurate picture/presentation to provide to potential customers, prior to the development projects.  Management tasks for investment developing require strong practice of in depth research, strategic planning, and data analysis.

This topics incentive to invest in real estate development not only applies to the principles of business but also exercises product planning for goods and services which can be used as an implication to foreign companies making business deals outside of subjectively real estate development. 

 Link to WSJ website 

http://www.wsj.com/articles/chinese-cash-pours-into-u-s-real-estate-1472569340