BEIJING, Nov. 5 (Xinhuanet) -- The United States has emerged as the shinning spot for overseas Chinese investment in recent years. According to a US consultancy, in the first nine months this year, Chinese firms spent over 12 billion US dollars on greenfield projects and acquisitions in America.

From a hefty stake in New York’s iconic General Motors Building to pork giant, Smithfield Foods, lately China has been buying America in a big way. Chinese investment in the U.S. is at an all-time high. And, experts predict strong growth in the next few years. Attorney Robert Profusek says Shanghui International’s 5 billion dollar purchase of Smithfield will be a catalyst when approved.

“Once it does people will say ah ha, if you do it right, it can be done because I do think, I’m a free market believer myself, we need to get rid of the rhetoric when it comes to investing, and do it on the merits.” Profusek said.

Doing deals on the merits resulted in Chinese investment in the U.S. hitting a record 6 billion dollars last year. Just 5 years earlier, the number was a mere 360 million dollars. What’s behind the recent acceleration Professor David DeNoon says China, in part, needs to slim down it’s ample holdings of U.S. Treasuries.

“They recognize as almost all economists do that interest rates are eventually going to go up and they’re going to take some kind of hit on those Treasuries. And, they want to balance it with assets that are going to yield a higher return. So diversification makes a lot of sense.” DeNoon said.

China’s State Administration Foreign Exchange or SAFE has reportedly opened an office in New York City with the express purpose of sniffing out good places for China to park its cash. China experts say last year’s purchase of AMC Loews movie theaters by China’s Dalian Wanda is a good model for future deals because of its non-controversial nature.

Experts predict China will focus future investments on U.S. infrastructure as well as agriculture and manufacturing companies.

But, DeNoon recommends that China avoid one industry in particular.

“If they press hard in the high tech areas, they’re just going to get resistance and be rebuffed. I think that would be a mistake.” DeNoon said.

Reporter: “Experts say where China puts its money is less important than continuing to buy America. They say there’s nothing like successful deal making to help cement the relationship between the two countries.”

(Source: CNTV.cn)