A worker inspects imported cars at a port in Qingdao, Shandong province, China May 23, 2018. REUTERS/Stringer
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Chinese auto investors are increasingly pouring money into Europe rather than the United States because of intense U.S. scrutiny of their deals under the Trump administration, according to industry sources and M&A data.The United States accounted for 26 percent of the total number of Chinese deals in either of the markets in the first five months of this year, according to the figures from Thomson Reuters and research group Dealroom.Thirteen of the 17 bankers, lawyers and consultants interviewed by Reuters, based in Europe, the United States or China, said their Chinese clients were increasingly choosing Europe over the United States because of growing difficulties with CFIUS.American officials say CFIUS reviewed about 250 foreign deals in total across all industries last year, an increase of 40 percent on 2016 .This year, CFIUS blocked U.S. semiconductor testing company Xcerra's purchase by China-based Sino IC Capital, which had expected the $580 million deal to help it benefit from automotive opportunities.State-owned China Heavy Duty Truck Group and UQM Technologies was also forced to scrap a deal that would have hiked its stake in UQM to 34 percent from 9.9 percent and given it three out of eight board seats.
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