Chinalco’s Rio Deal On Verge Of Collapse

Some Rio Tinto shareholders have long questioned the economic logic of the company taking a $19.5 billion investment from Chinalco, saying existing investors could raise the money through a rights issue. Now it appears they have the upper hand. Reports from London say that the Rio board is expected shortly to announce that it has [...]

China’s Automakers Likely To Cross Taiwan Strait For Parts

Taiwan’s three largest auto parts makers, Tong Yang Industry, TYC Brother Industrial and Depo Auto Parts Industrial, are open to investment from the mainland, Bloomberg reports. China’s car makers would get core design and manufacturing technologies they lack as assemblers and Taiwan’s parts makers would get access to on of the world’s still growing car [...]

China Deters Foreigners From Selling Bank Stakes

Bloomberg is reporting that Bank of America’s plan to sell $2.8 billion of shares in China Construction Bank that was pulled at the last minute on Dec. 15 was done so because of a securities law provision that would have required it to forfeit the profits on the sale.
China’s securities law bans investors holding more [...]

Faced With Losses, Beijing Stops Banks Buying Abroad

The FT’s Jamil Anderlini and Sundeep Tucker look at the reasons that China Development Bank didn’t get permission to bid $10 billion for Dresdner Bank, the German bank insurance giant Alliance has just sold to Commerzbank, and sees a trend.
“…after a string of high-profile overseas acquisitions last year that seemed to herald the arrival of [...]

Foreign Investment Rules Changed

Props to the China Law Blog for digging into a Xinhua report on China discouraging foreign investment in smokestack and extractive industries. This has the effect of vastly increasing what has been a relatively small list of industries off limits to foreign firms.
While this has more to do with China trying to make its [...]

Kicking The Foreign Investment Tires

The U.S. tire-maker Goodyear is close to investing $1 billion in a second plant near Dalian, according to Reuters, though the company says it has yet to make a final decision.
Goodyear has been producing in China since 1994, when it set up a joint venture with Dalian Rubber General Factory, and now has a [...]

CIC Welcome

While the electioneering U.S. takes China’s and other sovereign wealth fund’s capital but frets about foreigners buying America, the U.K. is courting it. British prime minister Gordon Brown, now visiting Beijing, told his counterpart Wen Jiabao that he would like the China Investment Corp. to set up an office in London as a base from [...]