Aiyengar, a JPMorgan analyst, believes that global firms are turning to China as a refuge amid global volatility.
Anu Aiyengar, JPMorgan’s Global Chair of Investment Banking, said that global?companies were increasingly keen to partner with innovative Chinese companies as rising economic and geopolitical risks fuelled a dealmaking boom.
Dealmakers will have another record-breaking year in 2026, as CEOs are relying on acquisitions and scale to deal with global volatility. Aiyengar stated that American and European companies increasingly see tie-ups between established Chinese players as being less risky than going alone in turbulent times.
"Collaborations and partnerships as well as acquisitions are all on the table," stated?Aiyengar.
Biotech is a field that has a lot of innovation. The same is true in the technology area. "I think this is a healthy way to frame China." she said.
This shift is visible already in the?pharmaceutical industry, where global drugmakers race to license Chinese-developed experimental drugs to reduce costs before looming expirations of patents. Analysts expect licensing deals to reach a new record in this year.
According to LSEG, Asia Pacific (ex Japan) saw a rebound in?M&A in 2026, with activity up by 57% compared to a year earlier, marking the strongest start since?2022.
Dealmaking Restructured by Politics
During Trump’s visit to Beijing China and the U.S. both agreed to create a Board of Investment to boost cross-border flow in non-sensitive industries.
Deals are getting bigger. LSEG recorded 68 transactions totaling $10 billion or higher last year, which is double the amount of 2024.
The market rewards scale. There's a premium for scale, right? Same industry. Aiyengar stated that the larger company is valued at a greater multiple than a smaller company.
Chinese outbound activity has also increased. According to Rhodium, overseas purchases by Chinese firms reached $9.6 Billion in the first quarter 2026. This is the highest amount since early 2021, and the fifth consecutive quarterly gain. The mining and energy sectors led the way. Zijin Gold, for example, took over Allied Gold of Canada in January at a cost of $4 billion.
Trump's second-term?has caused more uncertainty with its abrupt policy changes and volatile relations with China?and Russia?complicating long-term planning.
Aiyengar, JPMorgan's Aiyengar, said that JPMorgan encourages its clients to not "make long-term decision based on news of the moment," but rather build flexibility and use "more levers you can pull."
LSEG has noted that geopolitics are redrawing 'deal maps', as cross-border M&A is increasingly moving along 'politically aligned arteries. In April, China's national security concerns led it to block Meta's acquisition of AI startup Manus for $2 billion.
(source: Reuters)
