Chinese State-Backed Investments and Their Impact on Global Tech and Security Sectors
In 2015, Wright USA, an insurer for FBI and CIA personnel previously linked to Ironshore, was quietly acquired by China’s Fosun Group. This deal was financed by a $1.2 billion loan from four Chinese state banks routed through the Cayman Islands, raising concerns over foreign investment in sensitive sectors. The sale of Wright USA triggered an inquiry by the Committee on Foreign Investment in the United States (CFIUS), and the insurer was subsequently sold back to American ownership under unclear authority. This affair contributed to the Trump administration’s efforts to tighten U.S. investment-screening laws in 2018.
AidData’s dataset reveals that Beijing has spent approximately $2.1 trillion on overseas state-backed investments since 2000, with investments distributed roughly equally between developing and wealthy countries. Many of these overseas investments align with China’s strategic Made in China 2025 initiative aimed at dominating key industrial sectors, alongside current policies emphasizing technological self-reliance through the 15th five-year plan extending to 2030.
In the Netherlands, Nexperia’s acquisition was similarly financed with $800 million from Chinese state banks. Dutch authorities later intervened to separate Dutch operations from Chinese manufacturing facilities due to concerns about unauthorized technology transfers, resulting in Wingtech becoming the subsequent owner of those assets.
While China's overseas investments are legally permissible, they often involve use of shell companies or offshore structures, complicating transparency. The Chinese embassy in London maintains that Chinese firms comply with local regulations and contribute positively to economic growth and development.
