Iconic American Companies Owned by Chinese Investors

Headquarters: Boston, Mass.
Bought By: Haier
Headquarters: Qingdao, China

General Electric may have started out as a relatively small brand when it was founded in 1892, but the company has grown exponentially since then. Now, GE has its fingers in a lot of pies, from aviation and healthcare to power and venture capital. It’s a titan. 

General Electric ©Jonathan Weiss / Shutterstock.com

Many Americans find the brand appealing because it has a “Made in America” stamp on its products, however, the appliances wing of the company has been owned by Chinese company Haier since 2016. Haier bought GE appliances for $5.4 billion, a recording breaking sum at that time. The products are still made in the USA, but the decisions are made in China.

It might come as a surprise to many considering just how long the company has been around. However, it just goes to show that when it comes to making money, it really doesn’t matter where the money comes from – as long as it’s coming.

Headquarters: Smithfield, Virginia
Bought By: WH Group
Headquarters: Hong Kong

When it comes to producing pork-based products, Smithfield Foods reigns supreme. The company has been going since 1936 when it was created by Joseph W. Luter and his son. The business grew steadily over the years to become one of the largest in the industry, with over 500 farms in America alone. 

Smithfield Foods ©Keith Homan / Shutterstock.com

Back in 2013, WH Group bought Smithfield foods for the astronomical sum of $4.72 billion. At that time, it was the most expensive acquisition made by a Chinese company in America. So, while Smithfield’s HQ might be in Smithfield, Virginia, the company is actually run from Luohe in Henan province. 

Smithfield Foods can be found all over the country in stores like Walmart, so WH Group knew they were making a wise investment. After all, clothes and other wares might go out of fashion, but Americans will always need to be fed.

Headquarters: McLean, Virginia
Bought By: Anbang Insurance Group
Headquarters: Beijing, China

If you’re making a trip to New York, staying at the Waldorf-Astoria is a true taste of luxury. Not only is it an institution, but it’s also a part of American history. While the company is managed by Hilton Worldwide, it was bought by the Anbang Insurance Group of China in 2014 for $1.95 billion. 

The Waldorf-Astoria Hotel ©Sergey Kohl / Shutterstock.com

That extravagant price made it the most expensive hotel ever sold. Anbang made some big changes to the Astoria, including making some of the rooms into condos. This Chinese company has also looked at buying several other American-owned businesses over the years, including Starwood Resorts. 

While The Waldorf might be owned by China, it’s good to know that Hilton has a hand in the day-to-day operations. Hilton itself is a well-established, iconic American brand that the public knows, loves, and trusts – that goes a long way in this day and age. But, Hilton isn’t exactly 1005 American-owned, either.

Headquarters: Armonk, New York
Bought By: Lenovo
Headquarters: Quarry Bay, Hong Kong

As far as technology companies go, IBM has gone from strength to strength to dominate the market. Since its conception in 1911, the business has gone on to work on computer hardware, software, consulting services, invent the floppy disc, and more. The advancements the company has made are undeniable. 

IBM ©LCV / Shutterstock.com

Back in 2005, IMB announced that its Personal Computer Division had been acquired by Lenovo, who paid $1.25 billion for the pleasure. The Chinese business poured a lot of money besides that into IBM too. According to the statement, “Additionally, Lenovo will assume approximately $500 million of net balance sheet liabilities for IBM.” 

That kind of money is almost impossible for any business to refuse, even one as famous as IBM. Japan and China are known as technology meccas, so perhaps it makes sense that Lenovo would want to expand its reach even further.

Headquarters: Detroit, Michigan
Bought By: Shanghai Automotive Industry Corp (Joint Venture)
Headquarters: Shanghai, China

General Motors holds the distinction of being America’s largest automobile manufacturer. As such, it’s also one of the biggest companies of its kind in the entire world, which certainly makes it profitable and appealing. 

General Motors ©Linda Parton / Shutterstock.com

While General Motors isn’t owned by a Chinese company, it does rely on its partnership with Shanghai Automotive Industry Corp to keep the money rolling in. Both of the companies formed a joint venture in 1998. SAIC sells companies under the General Motors name, even if customers don’t realize it. SAIC has its headquarters in Shanghai, while GM has theirs in Detroit. 

At its core, General Motors still remains a very American brand with American values, but every company needs a helping hand sometimes. In this case, it’s a beneficial partnership that allows the brand to experience the best of both worlds.

Headquarters: Luxembourg, Stockholm, and NYC
Bought By: Tencent Holdings Ltd
Headquarters: Shenzhen, China

Spotify is such a part of everyday life now that it’s difficult to remember a time when we couldn’t listen to the songs we want at the drop of a hat. The company was first founded in 2006, providing listeners with a way to stream their favorite music. Although it came from Sweden, Spotify has traveled a lot since then. 

Spotify ©norazaminayob / Shutterstock.com

Back in 2017, Tencent Holdings and Spotify bought a stake in each other of roughly 10%. This joint venture helped Spotify crack into the Chinese market, while Tencent expanded its already large portfolio. It was a partnership of convenience for Spotify, who wasn’t strong enough at that point to dive into the Chinese market alone. 

By partnering up with Tencent, aka one of the largest companies in the world, Spotify put itself at a distinct advantage. Tencent executives also have the uncanny ability to spot a successful venture from a mile off, so to them, it was just another day at the office.

Headquarters: Palo Alto, California
Bought By: Tencent Holdings Ltd (5% Stake)
Headquarters: Shenzhen, China

Elon Musk might be the brains behind Tesla and the majority shareholder with 21.7%, but he isn’t the only one pumping money into the automotive company. There are plenty of shareholders, including Chinese company Tencent Holdings Ltd. Tencent isn’t just into music, but a variety of industries. 

Tesla ©Hadrian / Shutterstoc.com

Tencent is the world’s largest video game company and one of the largest social media companies, making it a force to be reckoned with. In 2019, it had a net income of $95.8 billion, so whatever they’re doing, they’re doing it right. At the moment, the company is still on the up and up.

As for Tesla, the brand is more than just a luxury car manufacturer. The success of the company arguably gave Musk the capital he needed to launch his other projects, including SpaceX. When it comes to technology, we have a lot to thank Tesla for.

Headquarters: Venice, Los Angeles
Bought By: Tencent Holdings Ltd
Headquarters: Shenzhen, China

Taking a picture with a silly filter has never been so popular thanks to Snapchat. The company was founded by Evan Spiegel and Bobby Murphy in 2011, but neither one would have realized how popular it would become. At the moment, Snapchat is valued at over $20 billion. 

Snapchat ©dennizn / Shutterstock.com

Back in 2017, Tencent extended its reach to Snapchat, too. The tech giant poured in over $2 billion for a 10% stake in the company, hoping to see a tidy return from its investment. On the flip side, Tencent used its tech expertise to develop the augmented reality Snapchat uses even further. 

With the rise in other apps like TikTok, Snapchat isn’t quite as popular as it once was. That doesn’t mean that it isn’t still a jewel in Tencent’s crown though, given how many people have the app on their phones.

Headquarters: Redmond, Washington
Bought By: FIH Mobile Ltd, HMD Global 
Headquarters: Tucheng District, New Taipei

Today, Microsoft Corp is a gargantuan business with several different focuses. However, back in 2016, the company decided to ditch the entry-level feature phone side of its production to FIH Mobile Ltd. The deal brought in $350 million, which is still a relatively small change to Microsoft.

Microsoft Corp (Feature Phone Business) ©mariakray / Shutterstock.com

Instead of cutting jobs, all 4,500 Microsoft employees were given the opportunity to transfer to join FIH in the new direction of the business. Microsoft continued to develop other mobile phones though, including the Lumia line and other existing projects as well as partnerships with brands like Acer and Alcatel. 

With a company as big as Microsoft, there are always new technologies and new ways to diversify the business to create a broader reach. Microsoft knows this better than anyone else, which is probably why it wasn’t too worried about parting ways with this particular division.

Headquarters: McLean, Virginia
Bought By: HNA Group Co Ltd
Headquarters: Haikou, China

Hilton Hotels & Resorts has been operating since 1919 thanks to founder Conrad “Nicky” Hilton. From a handful of simple locations, Hilton became a worldwide name with 586 hotels in 85 countries by 2018. Today, Hilton hotels are all over the world. 

Hilton Hotels ©Dace Kundrate / Shutterstock.com

In 2016, China’s aviation and shipping titan HNA Group paid $6.5 billion for a 25% stake in the hospitality chain, becoming the biggest shareholder. This was the second purchase that year for HNA who also bought Carlson Hotels Inc. in a bid to spread its wings into the hotel industry. At the time of the purchase, Hilton Hilton was worth around $26 billion.

While 25% isn’t 100%, it certainly makes a difference. Hilton will always remain a distinctly American brand thanks to pop culture history, but does it make a difference to guests to know the business isn’t rooted in Uncle Sam anymore? The jury’s out on that one.

Headquarters: New York City
Bought By: Legend Holdings Corp
Headquarters: Beijing, China

In recent years, shared workspaces have become more chic and on-trend than ever, especially for freelancers or companies just starting out. WeWork capitalized on this trend when it was conceived 10 years ago. Now, it manages over 4 million square meters of co-working space. 

WeWork ©Mitch Hutchinson / Shutterstock.com

However, it hasn’t always been smooth sailing for the business, who desperately needed some capital in 2016. As a result, Beijing-based company Legend Holdings Corp poured over $430 million into WeWork as a “new partner.” CEO of Legend’s Hony Capital John Zhao said, “Our investment in WeWork is both strategic and obvious.” 

The partnership seemed to work, keeping WeWork on the path to success when it looked like it was doomed to fade into obscurity. Cash injections make all the difference, especially when it comes to businesses that are still relatively young.

Headquarters: New York City
Bought By: Taikang Life Insurance Co Ltd
Headquarters: Beijing, China

What does a luxury broker of fine and decorative art and a life insurance company have in common? The answer is more complex than you might think. Sotheby’s was founded in London in 1744 before setting up shop in New York City and opening locations around the world. 

Sotheby's ©mm7 / Shutterstock.com

In 2016, Chinese life insurance company Taikang Life was announced as Sotheby’s newest majority shareholder. Taikang held that position until 2019 when the company was bought by French-Israeli titan Patrick Drahi. It’s unclear what happened to Taikang’s 13.5% stake or if they’re still in partnership with Drahi. 

The initial deal was a shock to most people given the quintessentially trans-Atlantic reputation of the business. Sotheby’s has been portrayed in numerous movies and TV shows as a place for the aristocracy and blue blooded gentry to sell their wares. This idea didn’t quite seem to fit its new identity as a Beijing-owned company.

Headquarters: Dallas, Texas
Bought By: Dalian Wanda Group Corp Ltd
Headquarters: Beijing, China

Starplex never had the same power in the industry as AMC did, with only 34 locations across America. As a result, many Americans never set foot in a Starplex theater because there just weren’t any around. The chain was bought by AMC in 2015 for $175 million, with many locations turned into AMC Classics. 

Starplex Cinemas @Royal_Window / Twitter.com

As we discussed earlier, AMC Theaters is largely controlled by the Dalian Wanda Group Corp Ltd. As Starplex faded into obscurity when the last of the theaters were changed over to AMC in 2017, the company was swallowed by AMC and Dalian to become another cog in the machine. 

Any remaining Starplex theaters turned into AMC Classic locations, erasing Starplex off the map forever. It was a blow to many fans of the nostalgic chain considering the name had been around since 1995. Movie lovers saw some huge blockbusters at a Starplex over the years.

Headquarters: Irvine, California
Bought By: Fujian Thai Hot Investment Co Ltd
Headquarters: Fujian, China

Alliance HealthCare Services have provided vital services in the sector for years, which probably made it more appealing to Fujian Thai Hot Investment in 2016. Alliance announced the new partnership after FTHI purchased a 51% stake in the company. 

Alliance HealthCare Services Inc @alliancehealthcareservices / Facebook.com

“We are thrilled to welcome our new partner and look forward to collaborating with our new Board Chairman Qisen Huang as well as Mr. Feng and Dr. Zhang as new Board members. Supported by leadership from Fujian Thai Hot, our team remains focused on executing against our long-term strategic growth plan, improving the long-term profitability of our business and enhancing the value proposition we provide to our customers.”

FTHI seems to be on the same page as previous investors and is interested in pushing Alliance forward. After all, with the health care sector being notoriously lucrative, why wouldn’t they want it to become more profitable? It might not suit us, but it certainly suits them.