In The Slate, Daniel Gross wrote about why Chinese investors are overpaying for struggling American companies:
“The China Price” is a phrase owners, workers, and shareholders at American manufacturers have learned to dread. Business Week calls it “the three scariest words in U.S. industry.” The China Price is the absurdly low rate at which a good or service can be provided by the Middle Kingdom. A company”say, Wal-Mart”can approach a longtime supplier with the China Price and demand that it meet it. Or else.
But now a different kind of China Price is emerging, one that’s more beneficial to the owners of American companies and stocks. The New China Price is what Chinese companies, flush with dollars thanks to their massive exports, are willing to pay to acquire struggling or second-tier American companies.
