the selling off of america investors from abroad are gobbling up stocks, bonds, real estate, and giant u.s. companies. foreign holdings total more than $1 trillion and are growing more than $100 billion a year. don\'t d
-The Japanese will come to Pearl Harbor again, not to bomb but to build.
They will decorate this historic terrain with lagoons, golf courses, swimming pools, tennis courts and luxury hotels ---a billion-
They hope to compete with Waikiki for a dollar resort.
Located on a beach west of the harbor, the resort will employ 6,000 people and increase state taxes by $24 million a year.
This is the most ambitious construction project in Hawaii\'s history, and it dwarfs the large amount of Japanese dabbling there in the past.
The resort on the West Beach of Oahu is a microcosm of foreign investment pouring into the United States. S.
Real estate is only part of the action.
Offshore investors are also buying stocks, bonds, government bonds, assembly plants, factories, fish, forests and companies, big and small.
Six years ago, the United StatesS.
Overseas Holdings exceed overseas value-
Assets owned in the United StatesS.
Over $100 billion.
The opposite is true today. Foreign-
State-owned enterprises are shaking the foundation of the United States. S.
Construction industry, domestic semiconductor production enterprises plummeted, with the United StatesS. car producers. U. S.
The children go to school on a bus operated by a Canadian company.
American firefighters rely on hydrants produced by an Arab company in Illinois.
Foreigners buy land in almost every state, and almost every industry has a piece of land.
Seventh place in federal debt
Where does this huge foreign purchasing power come from?
Raise your hand, America.
To a large extent, the US sell-off is a by-product of the country\'s huge trade deficit. The U. S.
Use it to fill the pockets of the world with the dollars paid for foreign products.
Japan is the biggest beneficiary of the US import boom.
Despite its obsession with the United StatesS.
Bagels, burgers and diapers, Japan is ahead of $50 billion in trade with the United States. S.
Last year, a surplus of $60 billion will be realized this year. .
If Americans like foreign products, foreigners like to buy American products in terms of assets.
Even if the dollar is at the peak of nosebleeds, it is true that the dollar has now fallen, even more so. The U. S.
Cheap, five. and-
In less than two years, the currencies of these countries have appreciated by 50% against the dollar.
Many investors are no longer content to deposit money into the bank.
They want America more and more. S.
Stocks, bonds and bonds-
It is called a portfolio in international finance.
They also want bricks and mortar.
Foreigners have a total of about $1 trillion in US Treasury bonds. S.
Assets at the end of last year.
About 20% of foreign governments put most of their money into the United States. S.
A large number of US stocks held by foreign companies, institutions and individual investors collapsed in this way: $80 billion in US Treasury bonds, more than $200 billion in corporate stocks and bonds, direct investment in the United States is over $180 billionS.
Bank deposits, agricultural land and commercial properties exceeded $400 billion. The U. S.
Not only are foreign funds welcome, but litigation is also filed with it.
At trade fairs to attract foreign investment, mayors and governors in Europe and Asia collided with each other.
Pingshi, Michigan, for 14 years, lured Mazda cars to build an assembly plant there by exempting property taxes.
The state of orkach has hired Morgan Grenfell, the London investment bank, to attract overseas funds. And why not?
Like Coca\'s foreign investment.
Coca-Cola, Ford and other multinationals have benefited the rest of the world, and on the other hand, capital has enriched the United States. S.
Lord Lever, a British businessman who served in the cabinet of Prime Minister Harold Wilson and James Callahan, said: \"After the war, Europe received 20 times more revenue from American investment than multinational companies.
Every country gains from productive investment.
\"There is another comfort for the sinofen: The United StatesS.
Foreigners only own 1% of the United States. S.
Real estate and arable land account for less than 5% of the company\'s profits.
While foreign companies can bring profits back home, the wages they pay and the added value of their manufacturing plants support America\'s GDP.
Employment is the most compelling reason to cheer for capital immigrants.
Foreign companies directly employ about 3 million Americans, about 3% of the labor force, and create jobs for countless people in the shops where these workers pay their wages.
There is no doubt that local businessmen and politicians are the biggest fans of foreigners.
Have you ever seen an authentic Japanese rock garden?
A work in Chattanooga, Tennessee.
Looking for real Nuremberger sausage?
Try Spartanburg, South Carolina.
South to its opposite
Trade union bias and cheap electricity have long attracted overseas investors, and now one out of every four foreign jobs is a trade union.
The governor, Joe Frank Harris, said more than 900 foreign companies had invested in Georgia and were \"blessed \".
Houston alone has 600 people in Texas.
As overseas construction companies change their skyline, New Yorkers, California and Hawaiian people are feeling a foreign invasion.
In Alaska, the Japanese control most of the fishing and timber industries and sign wage checks for 5% of the workforce. High-
A number of technology industrial parks established by foreign companies like NEC information systems have
Frustrated New England villages buzzing again.
New foreign investors tend to be more generous and aggressive than his predecessor did a decade ago.
The style is set by people like Sir James Goldsmith, a controversial British writer.
France\'s idlers in the United StatesS.
Shareholding includes 3.
It has 5 million acres of woodland and 371 large joint supermarkets.
Foreign investment is an emotional problem in every country, he said.
But whether America likes it or not, it is the only free world.
It will certainly attract foreigners.
Goodyear obviously didn\'t like the company to attract $5 --
In November, the Goldsmith offered billions of acquisitions.
Although Goldsmith finally gave in because Goodyear gave him $90 million, more than he spent 11.
He forced management to re-dispose of 5% of the company\'s shares.
Goodyear put its oil and gas sector on the block and is working on other restructuring plans.
Another big swing from abroad is Sir Gordon White, commander of the US expeditionary force of the British holding company Hansen Trust.
One of Goldsmith\'s supporters in the Goodyear attack, White burned a lot of rubber on his own.
He bought a bunch of Treasury bonds. S.
Companies that generate $3 billion in sales for Hansen each year.
Among them were Endicott Johnson, whose American mother dragged her children to buy the dreaded \"sensitive\" shoes, and Ball Park Frank ).
At the beginning of this year, White bought history for $930
Million acquisition of SCM.
White bids for the company, but at 4-month scuffle.
He then turned around and bought control of SCM from the arbitrator who had accumulated a lot of inventory in the bid offer.
Some prominent members of the takeover community believe the strategy is in violation of U. S. law. S.
But the court supported the White view.
He\'s currently sitting for $5.
He said he was ready to play the white knight. pun intended)
In future acquisitions
Britain has long been the largest direct investor in the United States. S.
The United States now has more than $44 billion in assets. (
Different from the portfolio, direct investment includes start-up-
New business and purchase of more than 10% of U. S. S. company. )
The British spent $6.
There were billions of parcels last year.
The third of $19.
5 billion per cent of foreign direct investment was reached again in 1986.
As of September, their purchase amount was $8. 7 billion.
Direct investment in the Netherlands ranked second.
Led by Royal Dutch Shell, it has a long history.
Long-term oil investment in the United StatesS.
Worth more than $36 billion.
Total direct investment in Japan over $19 billion-
Most of them are in their 80 s. -
And has entered third place.
This figure does not include all the huge real estate investment in Japan.
This year alone, Japanese investors will spend more than $4 billion on real estate.
Is located in Washington of Japanese economic institute said Japanese the company have at least 50% dollars of 400 or more of the shares. S.
Assembly or manufacturing companies employ about 110,000 people.
Foreigners are also busy increasing their portfolios.
Institutional and individual investors increased their holdings of nearly $80 billion in stocks and bonds last year.
They have a big appetite for corporate bonds: net purchases reached an astonishing $49 billion, bringing their bonds to a total value of more than $80 billion.
Foreigners also ride the bull on Wall Street.
They added $30 billion in new shares and held $126 billion in shares.
Overseas investors increased their holdings of US Treasury bonds by $ 13% last year to $220 billion.
Foreigners have taken so much national debt from the United States that the government\'s huge budget deficit is no longer so painful to absorb the credit market.
Salomon Brothers estimates that foreign investors are buying up to 30% of the $190 billion new Treasury bonds issued this year.
The biggest buyer is Japanese.
The Japan Association of Securities Dealers estimates that by the end of this year, Japan\'s total investment in securities will reach $45 billion, compared with only $0. 3 billion four years ago.
Japan\'s net purchases of government bonds averaged $8 billion a month.
The pace has accelerated since the Japanese government relaxed restrictions on institutional outbound investment.
Pension funds can now transfer 30% of their assets abroad, compared with only 10% before.
Japanese investors are also grabbing the U. S. market. S. blue chips.
Net stock purchases totaled $2 billion in the first half of this year.
Tax reform will make the United StatesS.
New top corporate tax rate-
40% in 1987 and 34% in 1988-
It will be the lowest in the industrial world.
Foreigners also saw the United States. S.
As a technical greenhouse, almost provides
S. Venture capital quarter to ensure that they receive shares in new discoveries (
See page 52 of the box).
However, the appeal of the United States goes beyond hightech and taxes.
For many companies, open stores in the United StatesS.
It is a strategic task.
The potential customer base makes the customer base in other countries look insignificant.
Transport Limited at 1983 Laidlaw
Canada, the largest school bus operator in North America, moved south of the border, where there is more room for development.
Business has quadrupled, and Laidlaw now attracts more than $0. 4 billion-
60% of income-from the U. S.
Munich electronics giant Siemens has invested $0. 75 billion in the United States. S.
The business will be closer to its biggest customers this year.
The chairman of calhainz karsk said his company must have a piece of cake in the United States. S.
Achieve a comprehensive economies of scale and cover its researchand-
Bertelsmann, Germany\'s leading media group, recently paid nearly $0. 5 billion to make New York\'s publishing industry speechless. -
Revenue of fiscal 1986 is about 70 times--for Doubleday.
But, relative to the two-day cost of buying Bertelsmann when the Germans are high in the dollar, buying is a theft.
Mark vostner, Bertelsmann chairman, said: \"Anyone who wants to be a lasting success in the media market must have a strong supporter in the United States. S.
Bertelsmann estimates it will charge an extra $1.
Sales across the Atlantic were $2 billion, with a total revenue of more than $5 billion.
For savvy investors, the vast industrial base of the United States has always been a big buy.
Cheap goods abound from Texas refineries to Silicon Valley. ups.
Hoong Bee Teck, assistant general manager of Wearnes Technology in Singapore, said: \"We have been able to get several small computers --
Because of our low overhead, component manufacturers and manufacturing something. \'\' U. S.
The owner of the cinema was frustrated by the competition between the video recorder and the cable, who had been turning off the lights and dumping items.
But Garth drabingsky, chairman of Canadian company Cineplex, has brought popcorn makers back to work in about 300 cinemas across the country. His U. S.
Among the most profitable cinemas in the country, there are more popular movies called bubble gum.
Free seats and fresher popcorn.
The growing protectionist sentiment in the United States has prompted some foreign manufacturers to take root before their products are plagued by expensive or insurmountable trade barriers.
The first is the Japanese automobile manufacturer;
Next is their supplier.
Others followed suit.
South Korea\'s Venus company was fined for dumping color TV sets in the United States. S.
Built a TV and a microwave.
Oven assembly plant in Huntsville, Alabama.
Japanese semiconductor manufacturers accused of dumping off the U. S. coast have invested $0. 2 billion in the past 18 months to open up or expand more than a dozen U. S. markets. S.
For rich people, AmericaS.
Is the safest safe haven in an unpredictable world.
Knowing that their cash is stored under the great American mattress, it will be easier for them to rest at night.
Hong Kong residents who returned to Chinese rule in 1997 have been stocking up cash in the United States. S. for years.
Other Asians agreed.
Indonesian banker and manufacturer Liem Sioe Liong acquired the Bank of hipernia in San Francisco (assets: $1. 9 billion)
Because he wants his money to be politically stable.
Under the blow of the slump in oil prices, Arabs are avoiding the problem of liquidity.
Instead of putting money into the bank-
This is largely what OPEC does when its oil revenues are plentiful ---
Arabs now choose long term
Regular bonds and cash cows, reliable businesses
As an American in department stores and health clubs.
The typical representative of the Arab New Spirit is the Arab investment bank company.
It is headquartered in the Gulf countries, including the ruling family, major banks and businessmen.
Referred to as the investment companyyear-
The old company made its first big dive in the United States. S.
It acquired Tiffany in 1984.
$0. 11 billion. (
Since then, the company has sold most of its elegant jewellery stores in New York to Tiffany management and GE credit. )
The investment by Mueller Co. Is less notable. , a 129-year-
An old company in Decatur, Illinois, is the leading U. S. fire hydrant manufacturer.
\"We are looking for equity in the streets of Bahrain, as easy to sell as it is in the streets of New York,\" said Michael Merritt, executive director of American investment.
Perhaps there is no better investment than the US that reflects the security, stability and benefits foreign investors desire. S. real estate.
The word real estate in Japan literally means real estate.
As a precious resource in the world, Japan\'s main property is very scarce and has become unmovable. -
If so, it rarely changes hands.
Shuwa Corp. Is eager to gain opportunities in China
As one of Japan\'s largest real estate companies, it spent $0. 62 billion in October for Arco Plaza in Los Angeles and ABC headquarters in New York.
The British are also interested in real estate.
They have nearly $1 billion in assets in Washington. C.
Including a large chunk of the water gate incident.
The real estate research team at brother Solomon estimates that foreigners have $24 billion in property in developed countries. S.
Real estate, still a one-minute share of $2. 3-
Levels quadrupled in 1980.
Japan holds more than $4 billion in shares, including 9 of the 12 largest hotels in Waikiki.
These figures are only a rough guess from industry experts, whose calculations are based on publicly announced transactions and incomplete government data.
The actual holdings of foreign countries are almost certainly much higher (
See box on page 56).
This may surprise American buyers, but many foreigners find the United StatesS.
A square foot office building in the prime area of Midtown Manhattan costs about $350.
If you can find a similar square foot available for sale in Tokyo for $4,000.
Yields on New York\'s commercial properties have been around 7.
The latest 5% is higher than Treasury bills.
The net operating income of many Tokyo buildings is about 2%.
Japanese brokerage companies used it last year.
Sell a stake in Rockefeller Center in New York on \"Let\'s be the landlord in Manhattan.
They reportedly unloaded $0. 175 billion worth of goods within a day.
What the Japanese want to do is not just to own America. S. properties;
They want to build them.
Last year, their construction companies invested nearly $2 billion in the United States. S.
According to the trade publication of the International Construction Week, the contract.
This is less than 1% of the total, but 18 times in 1982 is enough for domestic competitors.
Part of the reason they won the contract is that they can borrow money from the Bank of Japan at low interest rates and pass savings on the bid.
They also held out their necks as investors.
\"Japanese builders are willing to come in with the United States. S.
Become their equity partner.
\"It\'s very unusual,\" said Jack Scheffer, director of Sonnenblick --
Goldman Sachs, a mortgage banker in New York, has brought in a lot of foreign real estate money.
One of Japan\'s top new builders is Japan\'s most profitable construction company, Xiong Gujing.
Kumagai Gumi is expected to be the general contractor for the West Beach Resort near Pearl Harbor and is building hotels on Maui and Kauai.
In New York City, the company has participated in eight projects worth $1 billion with developer William Zeckendorf Jr.
The most ambitious is to transform the old Madison Square Garden from a parking lot to a $0. 55 billion commercial, retail and residential space.
His Japanese partner, Zeckendorf, said: \"Unlike what others have told you, I find them acting quickly, with very clear goals and loyalty.
Another ground breaker in Hawaii is Halekulani.
Construction subsidiary of Mitsui Real Estate Development Corporation in Japan. Its 450-
Guestrooms in Waikiki Beach, $250-
Million projects, 600 employees.
\"There is no space for projects of this size in Japan,\" said okokokuda, president of Halekulani . \".
The company has 300-
A luxury hotel called Waikiki park is being built nearby.
Ideas for foreigners to buy and build the United StatesS.
Skyscrapers don\'t seem to upset Americans.
What is Frank? -
Like in most countries. -
Aliens with farmland
They have 12 people now.
There are 1 million acres of land in the United States. S.
30 states limit the purchase of foreigners, and Minnesota completely prohibits foreigners from owning them.
There is also a century in Kentucky that is rarely enforced.
Old law allowing the state to confiscate foreigners
Unless the buyer becomes a US citizen, it owns the land. S.
Become a citizen within eight years
Strictly speaking, Sheikh Hamdan bin Rashid Al maktumm, Dubai\'s 1,010-acre land, will have to sell the land or become a US civilian within seven years.
The Japanese began to cause the same level of xenophobia as the Arab countries at the height of OPEC power.
\"We have a closer cultural and linguistic connection with the UK and the Netherlands,\" said Jeffrey Rosen swinger, international economist at the Federal Reserve Bank of Atlanta . \". \'\'Their U. S.
Investment is not as worrying as investment in Asia or Arabia.
When a county manager in Virginia plans to go abroad to recruit foreign investment, executives at electronics and telecoms companies in his region asked him to exclude Asia from his trip.
As one international investment banker said, \"there are foreigners and there are foreigners.
Fujitsu discovered the meaning of this sentence after announcing its $225 in October --
A $ 80% bid for the maker of chips for cutting-edge weapons, feizhao semiconductor.
When Schlumberger, a company in the Netherlands of the Netherlands, acquired fedora in 1979, no one retreated, but the government sweated Fujitsu when the National Security Council reviewed the transaction.
Paul fridenberg, assistant secretary of the Commerce Department, said: \"We are in an important competitive position in Japan . \" He is reviewing the proposal.
\"We should be careful.
Freedenberg should perhaps consider other things that Fujitsu brings, including new management skills.
After learning more than 150 Japanese
Companies owned in the United StatesS.
Martin Starr of Columbia Business School found that their absenteeism rate is lower than that of similar companies in the United States, and the quality of their products is also high. Own company.
Half the Japanese.
The non-defect of its own operation is less than 0. 5%. U. S. -
The owned factory usually has to be disassembled or repaired between 3% and 5% of the output.
Starr said: \"The Japanese manager in the United StatesS.
Develop the team spirit of employees by connecting incentives with team productivity.
In the south and north-east, foreign investment has contributed to the diversity and revival of oil and mill towns.
Twenty years ago, Spartanburg, South Carolina, relied on textiles and agriculture to survive and is now busy turning peach farms into industrial parks.
Typical tenant: Alcoa Fujikura fiber optic
SEW Eurodrive, optical joint venture and West Germany conveyor manufacturer-
Belt drive system.
There are many German and Swiss companies in Spartanburg, which the locals call Interstate 85, which runs through the town highway.
The local population says about 7,000 Spartans are now working for 60 foreign companies that have invested $1 billion there.
Foreigners find the cheap labor in this town particularly attractive.
\"People here are willing to do a day\'s work for a day\'s salary,\" said Paul Foster, executive vice president of operations for the German chemical giant Spartanburg Hoechst fiber, who plans to buy Celanese for $2. 85 billion.
While foreign investment is often irrefutable, it sometimes becomes so exploited that it consumes rather than creates capital.
Fish is an amazing example.
Processing industry in Alaska
For most of the year, about 100 ships were assembled 50 miles away from Alaska.
The captains, more than 300 feet metres high and six stories high, are floating plants handling Alaska\'s abundant supply of cod, cod and other bottom fish.
The flag they are flying is foreign, mostly Japanese.
Working on a ship is a foreign national who does not pay any American fees. S. taxes.
Alaska lost even money on food and fuel sales.
Foreign tankers supply ships at sea. Sea rendezvous.
The floating plant is equipped with a production line for processing fish, as well as a desalination plant for the production of fresh water cleaning fish.
The boats can turn a $600 five-ton fish into a ton of glue for the body, a crab --Meat replacement
The sashimi costs $3,000 a ton.
Each ship can produce 80 tons of paste per day.
Alaska has just begun shipping the processing industry to shore.
State officials have persuaded Japan\'s Susan Kaisa and Taiyo Fisheries to invest in fish-born plants in the Dutch port of the Aleutian Islands.
The Japanese Suji factory is wholly owned by the Japanese, and the teyo factory is a joint venture with Seattle company Ward Bay.
Revenue on the shore is small compared to overseas, but they boost the economy and morale of Dutch ports.
\"They pay property taxes,\" said Mayor Paul Fuhs . \".
They pay state taxes.
They have 40 employees who spend money here.
\'If we have convinced you now that foreign investment is a great thing for the United States, let\'s add a warning to the mayors and governors: look at all these gift horses.
Don\'t get more than you will.
You may even need-horrors --
Your employees have an MBA running these numbers for you.
Some regions seem to be very eager for business development, and they offer almost anything to foreign or domestic companies.
Consider a $800 deal for Toyota.
Millions of plants on the outskirts of Georgetown, Kentucky.
When Toyota starts producing Camrys in 1988, it will hire 3,000 people, an increase of $24.
Bank deposits increased by 4 million and total retail sales increased by $32.
One year 7 million
But what is the price?
The state promised Toyota 1,500 acres of free land, $47 million in new roads and $65 million in staff training programs.
Georgetown pays for the new police, firefighters and a sewer system to deal with the 120 tons of waste that Toyota will generate every day.
The bill could reach $8 million a year.
Georgetown currently has a budget of only $2 million.
Ronald Grantz, an automotive analyst at Montgomery Securities, sneered: \"Let\'s say that Georgetown\'s potential is not the most sophisticated financial mind . \". (
For more information about Toyota, see company performance. )
As long as it\'s AmericanS.
Sell yourself wisely, and foreign investment is a windfall for the country.
When foreigners set up companies in the United StatesS.
Not only did they increase output and employment, they also increased the tax base and reduced the country\'s budget deficit. Granted, the U. S.
If Americans had all the American production facilities, the gross national product would have been higher. S. soil.
If foreign investment does not replace the United States,S. investment --
For example, if domestic car manufacturers are competitive enough to meet the needs of the US market. S. consumers --
The country will be much richer.
But as GM laid off 29,000 jobs in Michigan, Ohio, Missouri and Illinois, the U. S.
The red carpet should be rolled out for seven Japanese manufacturers investing here. A foreign-
Owned factory buzzing around the clock, much better than Americans
Have a closed.
\"As long as my industry is successful, I don\'t care who owns them,\" said Lord Lever, a British politician . \". The U. S.
As long as the fire hydrant does not leak, the school bus runs on time, and the seats in the cinema are kept without bubble gum, it should not be taken care.
Foreign investment in the United StatesS.
From Florida to Vermont to Alaska, from pet food to plastic to plumbing, overseas investors are in almost every state and every industry.
The deals listed on the map all started after 80 s, when foreign investors either started a business or gained at least 10% of their shares.
Maine has the most foreign agricultural land, and Sir James Goldsmith has 800,000 acres of wood.