Chinese firms have announced $113 billion in overseas deals since the start of the year, led by China National Chemical Corp.’s $46 billion takeover of Syngenta AG, a worldwide player in pesticides and genetically-modified seeds. That tops the total of all deals in 2014 and is close to last year’s record $121 billion tally.

The shopping spree reflects an effort by President Xi Jinping’s government to encourage Chinese companies to gain know-how and market share through foreign transactions as the country’s $10.4 trillion economy continues to decelerate. It’s a potential boon for investment bankers -- and a source of worry for corporate chieftains in the U.S. and Europe who may soon face new Chinese competitors.

“What we’re seeing is the coming-of-age of corporate China. It’s being driven by a deliberate strategy to invest in the needs of the growing Chinese middle class and to acquire additional expertise,” said Hernan Cristerna, the global co-head of mergers and acquisitions at JPMorgan Chase & Co. “There’s a real opportunity for China to emerge as a partner of choice all over the world, if acquirers prove themselves to be responsible, constructive owners.”

Hardly a week passes without news of another Chinese cross-border deal. On March 22 Bang & Olufsen A/S, the maker of luxury electronics including $31,000 flat-screen TVs, announced talks to be bought by the Chinese businessman who controls luxury-car dealer Sparkle Roll Group Ltd.

The Chinese government has been encouraging the acquisitions, either through direct involvement with government-controlled companies or increased levels of financing from state-owned banks. The nation’s cabinet has made at least a dozen official pronouncements encouraging foreign deals since the beginning of last year.

David Fuller's view

This form of international capitalism, albeit with a demand element from the Chinese government behind it, would have been unthinkable thirty-five to fifty years ago.  I think it is another example of exceptionally good news for the long-term outlook of global economic growth, although it may not be generally perceived that way for some time.

That is because we are living through a very interesting but also highly disruptive period of global economic development.  Accelerated technological innovation is creating new materials and products, often faster than they can be readily and profitable utilised.  It is empowering many more companies and individuals, while also creating rapid obsolescence for businesses and also people who find themselves unable to adapt sufficiently quickly. 

Over the longer term global GDP growth will benefit considerably from the capitalistic economic policies of most countries, in multinational market places, catering to the world’s growing middle classes.  This environment is highly competitive but globalisation ensures that positive opportunities are increasing faster than they are decreasing. 

Globalisation also reduces risks of serious military conflicts between leading nations.  This has not always happened previously.  There is far more to gain from multinational commerce than another world war.  The latter could only reverse economic progress and wipe out many of the best and brightest, as it has always done in previous centuries.