In recent years, the U.S. economy has increasingly focused on the high-end service industries such as law, medical care, engineering and design. The blue-collar manufacturing once regarded as the mainstay of the economy has been increasingly hollowed out and shifted to other parts of the world. Investment committees have taken a new look at mergers and acquisitions, particularly with regard to mergers and acquisitions involving foreign funds, and censorship of such countries as China is more stringent, and the motives for Chinese acquisitions are often considered to be beyond economic drivers.
In response, RayBingham, co-founder and partner of CanyonBridge Fund in Silicon Valley, said recently that it is hard to say that the U.S. government is doing a good job of national security. However, national security needs to be balanced against the benefits of investing in U.S. capital. These foreign capital, the United States eventually will pay the cost of the local economy, may lead to stagnation of innovation, industry consolidation, the final competition will be weakened and job reductions.
'Without outside investment, smaller companies will continue to struggle - we often see companies invest 20% -25% of their revenue in R & D, but this ratio is unsustainable and there are problems with their survival that are easily greater Of the mergers of competitors.Once merged, their intellectual property will be incorporated into the parent company portfolio, jobs will be streamlined.Foreign investment and such domestic mergers and acquisitions, especially mature capital, such as private equity injection Capital, 'he said.
It is reported that CanyonBridge is a global private equity fund focused on the technology industry, with Chinese background, has been looking for opportunities to acquire chip manufacturing companies overseas.
RayBingham stressed that allowing the right kind of foreign capital to enter helps western companies become participants in this explosive growth market and continues to compete and get dividends from China's vast ecosystem of innovations, but it depends on whether policymakers can make informed Decided to allow constructive capital inflows to run the economy engine smoothly.