Is it the slowing Chinese economy, a weakened yuan? Probably both, but whatever the cause, Chinese companies have been very active in acquiring American ones.
The American printer company Lexmark is being sold to the Chinese group Apex for about $3.6 billion.
Shaun Rein, founder of China Market Research Group, said this trend will likely carry on for years.
“Already in Q1 of this year, there’s been more outbound Chinese investment than all of 2015,” he said. “So we’re just at the beginning of Chinese companies becoming global players through acquisition.”
An interesting wrinkle in this story is that the printer market in China is still booming. Unlike in the U.S. where Americans use electronic signatures and PDFs, all contracts and invoices still have to be printed out. So Apex, the company acquiring Lexmark, could be buying more than the Lexmark name.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Give today and get our limited edition tote.