The news that Chinese insurance group Anbang will purchase the Waldorf Astoria New York hotel, a Manhattan landmark and the flagship for Waldorf-Astoria Hotels and Resorts, has attracted enormous attention. The deal is worth USD 1.95 billion

Some American media have suggested that this purchase is similar to the Japanese Mitsubishi Estate Company's acquisition of the Rockefeller Center in 1989. Major Chinese investment arms including Fosun International Ltd have acquired shares in One Chase Manhattan Plaza and the General Motors headquarters building.

Americans were disappointed that Hilton sold the Wardolf to China, while China was not as upbeat as might nave been expected. As China rises, new acquisitions tend to create a worry that the West might be setting a trap for China.

Some have even suggested that America has long been looking to get rid of this burden, taking the view that China would be a loser from the acquisition.

It was a popular view that Japan’s purchase of American assets in the 1980s was a complete failure. With the money, the U.S. got out of trouble and paved way for technological revolution. While Japan only got bubble reputation. The puchase was acctually harmful to its national interests.

This view implies that China would follow Japan’s suit.

Such acquisitions are not inspired by vanity but reflect corporate interests.

Although Japan's interest in acquisitions shrank at the end of 1990s, its competitive capability remained strong. Continuing to do business with the U.S. was essential for Japan. The economic recession ruined Japan's domestic economy but not its international competitive strength.

It is inevitable that China will take a more active role in economic globalisation. Chinese companies should outperform Japan and improve their success rate, put aside any concerns that dampen their enthusiasm for foreign acquisitions, and make more of their opportunities. 

The article is edited and translated from《社评：购纽约地标饭店 不吹不惧不图虚》, source: Global Times