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Chinese companies are getting smarter about overseas deals

Lessons learned from terrible acquisition returns of past decade

| China
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WH Group's successful post-acquisition handling of U.S. meat processor Smithfield serves as a model for other Chinese companies looking to invest abroad.   © Reuters

Despite headlines about capital controls and restrictions on overseas investment, don't expect Chinese companies to give up international acquisitions any time soon. Even now, the dealmaking is continuing apace.

Many potential acquirers have extensive reserves of capital outside China that they can deploy. In priority sectors, such as those identified in the government's "Made in China 2025" plan, companies will still be able to move funds out. In fact, we are already seeing the government rolling back some of its restrictions on taking capital out of China.

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