Iconic American Companies Owned by Chinese Investors

Updated: Feb 23, 2024By Kate PrinceBusiness

This article originally appeared on Investing.com. It has been republished here with permission.

LP @Lightspring / Shutterstock.com

Some brands that you may think are quintessentially American are actually owned or overseen by Chinese investment conglomerates. It’s not always obvious until you see it yourself – even sports clubs have some interesting stakeholders.

America is home to many companies that are true titans of industry. From General Electric to General Motors, all of these thriving businesses help buoy the economy when it needs it – but even these giants need to get their money from somewhere.

Investments come from across the globe, but China is always looking to America to try and create fruitful partnerships. If that means saving a floundering brand, then so be it. Read on to find out which of Uncle Sam’s most influential companies are backed by some surprising businesses.

1. Sea World

Headquarters: Orlando, FA
Bought By: Zhonghong Zhuoye
Headquarters: China

The SeaWorld theme park chain has been going for 56 years, for better or for worse. The parks were owned by Busch Entertainment Group, but this all changed in 2009 when they were sold to Blackstone Group. Blackstone held onto the venture until 2017 when they sold the majority of their stake in a public offering.

Sea World ©Ami Parikh / Shutterstock.com

One of the buyers was Zhonghong Zhuoye. Two of the executives, Yoshikazu Maruyama and Yongli Wang, became board members once the deal was completed. Plans were soon unveiled in a bid to generate $14 million in profit for the theme parks over the following three years.

2. General Electric – Appliances Division

Headquarters: Boston, Mass.
Bought By: Haier
Headquarters: Qingdao, China

General Electric may have started out as a relatively small brand when it was founded in 1892, but the company has grown exponentially since then. Now, GE has its fingers in a lot of pies, from aviation and healthcare to power and venture capital. It’s a titan.

General Electric ©Jonathan Weiss / Shutterstock.com

Many Americans find the brand appealing because it has a “Made in America” stamp on its products, however, the appliances wing of the company has been owned by Chinese company Haier since 2016. Haier bought GE appliances for $5.4 billion, a recording breaking sum at that time. The products are still made in the USA, but the decisions are made in China.

It might come as a surprise to many considering just how long the company has been around. However, it just goes to show that when it comes to making money, it really doesn’t matter where the money comes from – as long as it’s coming.

3. Cleveland Cavaliers

Headquarters: Cleveland, Ohio
Bought By: Investor Group led by, Jianhua Huang
Headquarters: Beijing, China

Basketball team the Cleveland Cavaliers burst onto the scene in 1970 with thanks from their sponsors. The team continued to grow in the game over the decades, with backing from Goodyear Tire and Rubber Company. However, in 2019, they got some overseas investors, too.

Cleveland Cavaliers @Cavs / Facebook.com

The Cavaliers signed a deal with Jianhua Huang, a Chinese businessman that previously made deals with the New York Yankees and other teams throughout America. Huang reportedly bought a 15% stake in the Cavaliers. It’s not unusual for sports clubs to have outside investors from overseas.

LeBron James is popular in China, however, he left by the time the deal was finalized. Something tells us that LeBron didn’t mind too much, considering how much money he’s making with the Lakers. Whether the Cavaliers miss him or not is a different story!

4. General Motors

Headquarters: Detroit, Michigan
Bought By: Shanghai Automotive Industry Corp (Joint Venture)
Headquarters: Shanghai, China

General Motors holds the distinction of being America’s largest automobile manufacturer. As such, it’s also one of the biggest companies of its kind in the entire world, which certainly makes it profitable and appealing.

General Motors ©Linda Parton / Shutterstock.com

While General Motors isn’t owned by a Chinese company, it does rely on its partnership with Shanghai Automotive Industry Corp to keep the money rolling in. Both of the companies formed a joint venture in 1998. SAIC sells companies under the General Motors name, even if customers don’t realize it. SAIC has its headquarters in Shanghai, while GM has theirs in Detroit.

At its core, General Motors still remains a very American brand with American values, but every company needs a helping hand sometimes. In this case, it’s a beneficial partnership that allows the brand to experience the best of both worlds.

5. Spotify

Headquarters: Luxembourg, Stockholm, and NYC
Bought By: Tencent Holdings Ltd
Headquarters: Shenzhen, China

Spotify is such a part of everyday life now that it’s difficult to remember a time when we couldn’t listen to the songs we want at the drop of a hat. The company was first founded in 2006, providing listeners with a way to stream their favorite music. Although it came from Sweden, Spotify has traveled a lot since then.

Spotify ©norazaminayob / Shutterstock.com

Back in 2017, Tencent Holdings and Spotify bought a stake in each other of roughly 10%. This joint venture helped Spotify crack into the Chinese market, while Tencent expanded its already large portfolio. It was a partnership of convenience for Spotify, who wasn’t strong enough at that point to dive into the Chinese market alone.

By partnering up with Tencent, aka one of the largest companies in the world, Spotify put itself at a distinct advantage. Tencent executives also have the uncanny ability to spot a successful venture from a mile off, so to them, it was just another day at the office.

6. Tesla

Headquarters: Palo Alto, California
Bought By: Tencent Holdings Ltd (5% Stake)
Headquarters: Shenzhen, China

Elon Musk might be the brains behind Tesla and the majority shareholder with 21.7%, but he isn’t the only one pumping money into the automotive company. There are plenty of shareholders, including Chinese company Tencent Holdings Ltd. Tencent isn’t just into music, but a variety of industries.

Tesla ©Hadrian / Shutterstoc.com

Tencent is the world’s largest video game company and one of the largest social media companies, making it a force to be reckoned with. In 2019, it had a net income of $95.8 billion, so whatever they’re doing, they’re doing it right. At the moment, the company is still on the up and up.

As for Tesla, the brand is more than just a luxury car manufacturer. The success of the company arguably gave Musk the capital he needed to launch his other projects, including SpaceX. When it comes to technology, we have a lot to thank Tesla for.

7. 21st Century Fox

Headquarters: New York City
Bought By: Bona Film
Headquarters: Beijing

The glittering lights of Hollywood and the looming presence of 21st Century Fox has been part of the American dream since the days of Marilyn Monroe, but the company itself is no longer 100% American. In 2014 Beijing’s Bona Film bought 19% of Fox for $70 million.

21st Century Fox RozenskiP / Shutterstock.com

The following year, Bona poured in $235 million into a slew of upcoming movies that the movie studio was producing. Through the financing body TSG, Bona was able to help several blockbusters get off the ground. TSG had done it in the past with movies like The Martian and X-Men Days of Future Past.

8. Smithfield Foods

Headquarters: Smithfield, Virginia
Bought By: WH Group
Headquarters: Hong Kong

When it comes to producing pork-based products, Smithfield Foods reigns supreme. The company has been going since 1936 when it was created by Joseph W. Luter and his son. The business grew steadily over the years to become one of the largest in the industry, with over 500 farms in America alone.

Smithfield Foods ©Keith Homan / Shutterstock.com

Back in 2013, WH Group bought Smithfield foods for the astronomical sum of $4.72 billion. At that time, it was the most expensive acquisition made by a Chinese company in America. So, while Smithfield’s HQ might be in Smithfield, Virginia, the company is actually run from Luohe in Henan province.

Smithfield Foods can be found all over the country in stores like Walmart, so WH Group knew they were making a wise investment. After all, clothes and other wares might go out of fashion, but Americans will always need to be fed.

9. Hilton Hotels

Headquarters: McLean, Virginia
Bought By: HNA Group Co Ltd
Headquarters: Haikou, China

Hilton Hotels & Resorts has been operating since 1919 thanks to founder Conrad “Nicky” Hilton. From a handful of simple locations, Hilton became a worldwide name with 586 hotels in 85 countries by 2018. Today, Hilton hotels are all over the world.

Hilton Hotels ©Dace Kundrate / Shutterstock.com

In 2016, China’s aviation and shipping titan HNA Group paid $6.5 billion for a 25% stake in the hospitality chain, becoming the biggest shareholder. This was the second purchase that year for HNA who also bought Carlson Hotels Inc. in a bid to spread its wings into the hotel industry. At the time of the purchase, Hilton Hilton was worth around $26 billion.

While 25% isn’t 100%, it certainly makes a difference. Hilton will always remain a distinctly American brand thanks to pop culture history, but does it make a difference to guests to know the business isn’t rooted in Uncle Sam anymore? The jury’s out on that one.

10. Brookstone Inc

Headquarters: Peterborough, New Hampshire
Bought By: Sanpower Group Corp; General Electric Capital Corp; Sailing Capital Management Co Ltd
Headquarters: Nanjing, China; Connecticut, United States; Shanghai, China

Brookstone Inc. started out as a mail-order business selling special tools that were hard to find in the mid-60s. From there it started selling items like remote control toys, alarm clocks, and much more. As of 2018, there were 34 locations in America.

The company fell on hard times in 2014 when it was forced to file for bankruptcy under Chapter 11, but Chinese companies Sailing Capital and Sanpower came forward and bought it for $173 million. Thankfully, this purchase and a large injection of cash saved the company from going under completely. Brookstone came out of bankruptcy in July 2014.

However, not everything was sunshine and rainbows from thereon in. Four years after the purchase Brookstone filed for bankruptcy again, closing all of its US locations. Now, only airport stores and its website remain. It just goes to show that it takes more than cash to make the dream work.

11. WeWork

Headquarters: New York City
Bought By: Legend Holdings Corp
Headquarters: Beijing, China

In recent years, shared workspaces have become more chic and on-trend than ever, especially for freelancers or companies just starting out. WeWork capitalized on this trend when it was conceived 10 years ago. Now, it manages over 4 million square meters of co-working space.

WeWork ©Mitch Hutchinson / Shutterstock.com

However, it hasn’t always been smooth sailing for the business, who desperately needed some capital in 2016. As a result, Beijing-based company Legend Holdings Corp poured over $430 million into WeWork as a “new partner.” CEO of Legend’s Hony Capital John Zhao said, “Our investment in WeWork is both strategic and obvious.”

The partnership seemed to work, keeping WeWork on the path to success when it looked like it was doomed to fade into obscurity. Cash injections make all the difference, especially when it comes to businesses that are still relatively young.

12. Sotheby’s

Original Headquarters: New York, NY
Purchased By: Taikang Life Insurance Co Ltd
Country: China

What does a luxury broker of fine and decorative art and a life insurance company have in common? The answer is more complex than you might think. Sotheby’s was founded in London in 1744 before setting up shop in New York City and opening locations around the world.

In 2016, Chinese life insurance company Taikang Life was announced as Sotheby’s newest majority shareholder. Taikang held that position until 2019 when the company was bought by French-Israeli titan Patrick Drahi. It’s unclear what happened to Taikang’s 13.5% stake or if they’re still in partnership with Drahi.

13. Snapchat

Headquarters: Venice, Los Angeles
Bought By: Tencent Holdings Ltd
Headquarters: Shenzhen, China

Taking a picture with a silly filter has never been so popular thanks to Snapchat. The company was founded by Evan Spiegel and Bobby Murphy in 2011, but neither one would have realized how popular it would become. At the moment, Snapchat is valued at over $20 billion.

Back in 2017, Tencent extended its reach to Snapchat, too. The tech giant poured in over $2 billion for a 10% stake in the company, hoping to see a tidy return from its investment. On the flip side, Tencent used its tech expertise to develop the augmented reality Snapchat uses even further.

With the rise in other apps like TikTok, Snapchat isn’t quite as popular as it once was. That doesn’t mean that it isn’t still a jewel in Tencent’s crown though, given how many people have the app on their phones.

14. Starplex Cinemas

Headquarters: Dallas, Texas
Bought By: Dalian Wanda Group Corp Ltd
Headquarters: Beijing, China

Starplex never had the same power in the industry as AMC did, with only 34 locations across America. As a result, many Americans never set foot in a Starplex theater because there just weren’t any around. The chain was bought by AMC in 2015 for $175 million, with many locations turned into AMC Classics.

Starplex Cinemas @Royal_Window / Twitter.com

As we discussed earlier, AMC Theaters is largely controlled by the Dalian Wanda Group Corp Ltd. As Starplex faded into obscurity when the last of the theaters were changed over to AMC in 2017, the company was swallowed by AMC and Dalian to become another cog in the machine.

Any remaining Starplex theaters turned into AMC Classic locations, erasing Starplex off the map forever. It was a blow to many fans of the nostalgic chain considering the name had been around since 1995. Movie lovers saw some huge blockbusters at a Starplex over the years.