Go Global Retail Insights, Investments from Strategic Partners in China

The United States continues to be an attractive destination for foreign direct investment. The continued appeal results from the large U.S. domestic market, strong economic conditions, and the new lower corporate tax rate instituted under President Trump.

Many foreign companies interpret the U.S. trade policies as strongly advantageous, and think the best path to gain access to U.S. opportunities is through foreign direct investment.

American and global investors alike are risk adverse. Investors are rightfully concerned about high-profile corruption flourishing in many of the major emerging markets, including but not limited to Russia, Brazil, and South Africa. Understandably, they view the US and the West favorably in this light.

Over the past few years, there’s been a significant surge in Chinese investment in the United States, especially in M&A. Both private and state-owned Chinese investment groups are trying to find ways to develop business in what they perceive as the most desirable consumer market in the world.


Chinese investments span across all sectors, with a significant focus on innovation. The IT sector is the source of much deal-making activity as investors seek to position their companies to compete in the 21st century digital economy.

Foreign direct investment in the U.S., provide much-needed growth capital, along with manufacturing excellence, and competency in a responsive supply chain; Optimally, over time an interdependent relationship develops: Material value is added to the acquired company, and a mutually beneficial learning environment follows.

Major factors for increased Chinese M&A activity in the U.S. include:

  • Availability of funds, both private and public
  • Strong macroeconomic environment
  • Favorable regulatory environment
  • Foreign exchange dynamics
  • Lower risk than in their country
  • Abundance of opportunities

Yet with all these positives, numerous Chinese investments in both global and American brands have been only moderately successful.


Go Global’s Retail experience is in the consumer goods vertical, particularly in the fashion retail industry, and has witnessed that the most successful foreign investors are those that capitalize and build their knowledge of the local economy.

Oftentimes the acquiring company uses its traditional operational model, developed in their local market.  Go Global Retail believes that the best approach is to partner local institutional experts with foreign investors, to develop and implement a long-range plan for regional and global expansion of the brand and corporation.

Go Global Retail senior managers have observed that successful Chinese investment companies often adopt a “light touch” engagement style, seeking to neither dominate nor change the acquired asset. Equally important for driving corporate revenue, and increasing enterprise value, is the favorable prospects for brand expansion into China. The intelligence the Chinese investors bring to opportunities in their home country is clearly invaluable for American companies.

Go Global Retail understands it’s necessary for U.S. businesses to be thorough in every M&A process, whether the acquirer is from the US, China or anywhere in the world.

Go Global Retail believes that investors will continue to face a volatile global operating environment, and that the United States and the West will continue to be attractive to foreign direct investment. We’re certain that FDI will continue at a robust level, especially in respect to the fashion retail business over the next few years.

Visit Go Global Retail for additional insights


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About the Author: Jeffrey Streader

Jeff Streader is a global leader in the consumer sector. He has over 30 year’s experience leading multinational, complex organizations for some of the leading consumer brands and retailers in the world. His background includes product and supply chain, technology and operations. In 2016, Jeff founded Go Global Retail, an advisory and investment platform. Clients include brands, retailers, apparel manufacturers and textile mills. The firm’s focus includes heritage and digital brands with strong positioning. www.goglobalretail.com Jeff advised retailer American Apparel pre-bankruptcy in developing their restructuring plan. Jeff’s scope was design to retail, including oversight of manufacturing and supply chain. He led initiatives for downsizing, redesign of processes and workflow and he was executive sponsor the system and infrastructure assessment. In 2014, Jeff began working with private equity firm Oaktree Capital as the Chief Operating Officer at Billabong. He led efforts to rationalize regional redundancies and was instrumental in streamlining speed to market of the brand’s design pipeline. Jeff upgraded the company’s systems, implemented a new ecommerce platform, PLM upgrade and led the global distribution center optimization project. In 2011, Mr. Streader was Operating Partner at Marlin Equity, an LA-based middle-market private equity firm with over $6 billon of capital under management. Jeff was responsible for representing the firm and leading investments in the consumer sector. In 2008, Jeff was Chief Supply Chain Officer at Guess?, Inc. leading global operations. He was responsible for R&D and Product Development, Tech Design, Supply Chain and Quality, Compliance, Technology and Logistics for teams in Asia, Europe and North America. He was executive sponsor and upgraded the company’s PLM platform and implemented new systems in WMS, SCM and financial settlement. Earlier, Jeff was President of Kellwood Company, Vice President of Global Supply Chain at VF Corporation and he had lead roles with Oxford Industries. He has been a Board Member of WRAP since 2007, the largest independent CSR program in the world. Jeff holds a degree in Business Administration from Stockton University and he has been an adjunct professor at the Fashion Institute of Design & Merchandising in Los Angeles since 2012.