Since 2018, the United States has been tightening its laws to prevent its rivals from buying into its sensitive sectors – blocking investments in everything from semiconductors to telecommunications. However, the rules weren't always so strict.
In 2016, journalist Jeff Stein revealed that Wright USA, an insurance company providing liability coverage for FBI and CIA agents, had been sold to Chinese firm Fosun Group. US concerns became evident as the company had access to sensitive personal information about high-level intelligence officials, raising fears about potential espionage.
Wright USA's acquisition wasn't an isolated incident. Recent data indicate a substantial influx of Chinese state money investing in significant assets across the United States, Europe, and other regions. China's aspirations to dominate strategic industries have fueled its multitrillion-dollar overseas investment efforts, raising alarms in Western capitals.
In the wake of the Wright USA acquisition, the U.S. Treasury initiated an inquiry, which eventually led to the insurer being sold back to American owners — unclear who directed that move. Observers noted that the Wright USA sale was integral to the first Trump administration's decision to tighten investment regulations in 2018.
China's spending has shifted, now focusing on countries that are more receptive to Chinese investments, evidenced by several strategic acquisitions. The involvement of Chinese state banks in financing these acquisitions, as illustrated by the case of the semiconductor company Nexperia in the Netherlands, further complicates China's global financial influence.
The ongoing scrutiny of China's investments reveals a complex interplay between economics and security, as nations move from defense to offense in their investment strategies.
