China doet de ene na de andere grote investering in het buitenland. Zo werd onlangs het Waldorf Astoria Hotel in New York gekocht voor ruim 1,5 miljard euro, een van de grootste hotelovernames ooit. De Chinese aanpak lijkt op de Japanse investeringsdrang van dertig jaar geleden. Maar daar liep het slecht mee af.
Those who study the overseas investments of Chinese enterprises are starting to get jitters. Japanese companies went on a foreign real estate buying spree in the 1980s that ended in serious losses, and the question now is whether China will repeat the same mistake.
Back then, the Mitsubishi Estate’s symbolic acquisition of New York’s landmark Rockefeller Center was much like Chinese company Anbang Insurance’s recent $1.95 billion acquisition of New York’s Waldorf-Astoria Hotel, another Manhattan landmark.
Japan’s booming 1980s economy, its growing trade surpluses, and the yen’s appreciation because of pressure from trade partners led the country to its highest overseas investment. Unfortunately, those acquisitions ended up mostly as huge losses later. During the high growth period, Japanese businesses were simply too optimistic. While real estate values in the United States were generally much lower than in Japan, the Japanese believed that prices would continue to rise.
Read the full article: Will China Repeat Japan’s 1980s Foreign Real Estate Bust?
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