Global Firms Partner China Amid Risks

Global companies are increasingly seeking partnerships and acquisitions with innovative Chinese firms to navigate mounting economic and geopolitical risks, according to Anu Aiyengar, JPMorgan's Global Chair of Investment Banking. This trend is driving a dealmaking boom, with 2026 projected to be another record year for M&A. American and European companies view tie-ups with established Chinese players as less risky than independent ventures, especially in biotech and technology. The pharmaceutical sector is already seeing a surge in licensing deals for Chinese-developed medicines. Asia Pacific (ex-Japan) M&A activity has rebounded significantly, with China — Hong Kong's capital markets also contributing to the deal pipeline. Geopolitical factors, including policy shifts from the United States and actions like China blocking Meta Platforms' acquisition of Manus, are reshaping cross-border M&A flows, leading to deals along politically aligned corridors. Chinese outbound activity is also climbing, with notable acquisitions like Zijin Mining's takeover of Allied Gold. JPMorgan Chase is advising clients to build flexibility in their strategies amidst this uncertainty.