A Chinese firm bought an insurer for CIA agents
4 days ago
- #China-investments
- #geopolitics
- #national-security
- A Chinese firm, Fosun Group, bought Wright USA, an insurer for CIA and FBI agents, in 2015, raising US security concerns.
- The purchase was part of China's broader strategy to invest $2.1 trillion globally, targeting both developing and wealthy countries.
- Chinese state banks provided a $1.2 billion loan for the Wright USA deal, routed through the Cayman Islands.
- The US tightened investment laws in 2018 after cases like Wright USA highlighted risks of foreign ownership in sensitive sectors.
- China's 'Made in China 2025' plan aims to dominate 10 cutting-edge industries, including robotics and semiconductors.
- The Netherlands intervened in Nexperia, a Chinese-owned semiconductor firm, over technology transfer concerns.
- Chinese investments are legal but often obscured through shell companies or offshore accounts.
- Wealthy countries initially underestimated Beijing's strategic coordination behind Chinese overseas investments.
- China's spending patterns are shifting toward countries welcoming its investments.
- Geopolitical tensions are prompting stricter investment screening in the US, UK, and Europe.