What American corporations does China own?
As an avid gamer, I‘m always tracking the latest industry news, especially when it comes to which major players are making big power moves. Lately, all eyes have turned east as China aggressively expands its influence in the global economy. According to recent reports, China has set its sights on cornering the US tech and entertainment markets to level up its worldwide leaderboard standings.
China Owns a Surprising Number of US Companies
China has already taken controlling stakes in various US firms, providing huge XP boosts to their portfolio. Some of their high-profile captures with ties to the gaming world include:
- Riot Games – The developers of League of Legends sold for $400 million to China‘s tech giant Tencent in 2015.
- Epic Games – Tencent bought a 40% share of the Fortnite creators for nearly $330 million in 2012.
- Activision Blizzard – Through various deals, Tencent acquired about a 5% stake in the Call of Duty publishers.
Beyond gaming, China owns all or part of US companies like AMC Theaters, Smithfield Foods, and even the Waldorf-Astoria hotel in New York. They‘ve plunked down serious cash amounting to almost $150 billion over the past decade to purchase American real estate and corporations.
China Covets America‘s Rich Natural Resources
In addition to companies, China has targeted America‘s resource-rich lands to fuel its continued industrial growth. As of 2021, Chinese investors held nearly 400,000 acres of US agricultural properties, increasing their holdings by more than 100% since 2010.
Some gamers may recognize John Deere as the brand of that sweet looking tractor you can sometimes operate in farming sim games. Well in the real world, China owns the factories that build many of Deere‘s tractors sold in North America. In 2021, Deere actually had 10% higher sales in China than in the US.
Major US Corporations Depend Heavily on Chinese Manufacturing and Sales
From iPhones to Buicks to Nikes, so much of what American consumers purchase is produced in whole or partly in China. As an example, it‘s forecasted that 50% of Tesla‘s global battery production will come from its new Gigafactories located in Shanghai and Germany by 2025.
Additionally, China accounts for 20% of Apple‘s total sales. And General Motors sells over 3 million vehicles in China annually, more than any other market. Losing access to Chinese manufacturing facilities and customers would massively damage these corporations‘ supply chains and profits.
| US Company | Portion of Revenue from China |
| Wynn Resorts | 75% |
| Qorvo Inc. | 61% |
| Las Vegas Sands | 55% |
As seen above, numerous companies rely heavily on the Chinese economy, with as much as 75% of their worldwide revenue being tied to Chinese sales and operations.
The Risks of China Controlling Vital US Infrastructure
Some analysts warn about the risks associated with China wielding so much influence over American brands and supply chains. As relations between governments become more strained, China could gain leverage by threatening to choke multinationals off from Asian markets.
Owning thousands of acres of domestic farmland also carries security concerns. Farm production touches nearly all parts of society from food manufacturing to transportation and logistics. China closing off access to these resources in a conflict would inflict major disruption.
What‘s Next for China‘s Digital Manifest Destiny?
Given China‘s aggressive acquisitions over the past decade, they don‘t seem content resting on their laurels. Expect them to continue purchasing stakes in US entertainment brands and tech firms, especially those with strategic interest like VR and cloud-computing companies. Reports suggest China plans to dominate artificial intelligence and quantum computing in the near future.
For competitive American gaming publishers, increasing dependence on China may soon become an uncomfortable reality. As we‘ve seen in the past with NBA controversies, China won‘t hesitate to ban or blacklist companies that run afoul of their political lines.
With these buyouts granting Chinese conglomerates money and influence rivaling actual nations, we may see a whole new kind of shadow diplomacy around tech censorship and access. Could geo-blocking games and services become common negotiation tactics between superpowers?
Regardless of whether you welcome or fear China‘s rapidly expanding empire, all global citizens will eventually feel the shockwaves. Here‘s hoping relations between the old superpowers remain peaceful as we advance into strange new digital worlds.
