By Chinese companies are ramping up merger and acquisition (M&A) activity in anticipation of potential tariffs under a second Trump administration. Analysts predict a surge in deals as firms seek to strengthen their market positions and mitigate the impact of increased trade barriers.
Key sectors driving this activity include semiconductors, electric vehicles (EVs), and renewable energy. In 2024, China’s M&A deal value reached $500 billion, and experts forecast a 20% increase in 2025. “Companies are focusing on consolidation and strategic partnerships to build resilience,” said Li Wei, a senior analyst at Sinolink.
The Chinese government is expected to support these efforts through policy incentives and regulatory easing. This proactive approach aims to ensure that Chinese industries remain competitive in the face of global trade uncertainties.