China is experiencing a boom in merger and acquisition (M&A) activity as companies prepare for potential tariffs under a second Trump administration. Analysts predict a significant increase in deals, particularly in sectors like 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 pursuing strategic deals to build resilience and diversify their supply chains,” 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.