Despite its recent domestic economic slowdown, Corporate China's foreign acquisition binge continues apace. Chinese corporate giants have been relentlessly pursuing Western foreign assets in a shopping frenzy with no signs of abating.
On the surface, Chinese foreign acquisitions appear to be geared toward industries that meet the strategic resource needs of its domestic population — agriculture, food, and energy. The companies leading the charge are typically large, global champions with access to abundant capital, and with the explicit or implicit backing of the state. But this does not make them good deals, and this does not relieve the Chinese acquirers of their profit obligation.