question: Why can Chinese Nationals buy American Businesses / Real Estate, but not vice versa?
comment: North America is a relatively open market, and these investors pay cash, which is attractive to sellers. In China the market is mostly closed to those outside the government
passages: Foreign investment in United States real estate
  
  Foreign investment in the United States real estate is a major source of investment in the United States, facilitated by an open economy legislation (foreign individuals and corporations are free to purchase residential or commercial real estate).
  
  Section::::Overview.
   Foreign non-resident real estate owners have two taxation options. One of them is to have the property taxed as Effectively Connected Income (ECI) of a U.S. trade or business. Income from real estate that is "effectively connected" with a U.S. trade or business is taxed to the owner of the real estate at the same rates that apply to U.S. individuals and corporations. In addition, the owner can claim deductions that arise from the operation of the property.
   All U.S. real estate (and other assets) owned by non-resident aliens (and others) is subject to an estate tax upon the owner’s death. However, U.S. citizens and residents are permitted a partial exclusion from estate taxes; non-resident aliens are also allowed a smaller exclusion (prior planning may change the exclusion level to that of a citizen/resident).
  
  Section::::Purchase structure.
  
  There are various variables to consider when deciding the structure of a real estate purchase in the U.S., like:
  
  BULLET::::- Is the real estate income-producing or is it a personal residence?
   Section::::Reasoning.
  
  Section::::Reasoning.:Access to funding.
  
  For private Chinese firms looking to expand and obtain capital investment, they could only raise private forms of equity through private investors, venture capitalists, etc. A company with public status on a United States exchange would give them the ability to access much larger pools of public investments and an entry into the United States capital markets. Being listed on a United States exchange would also enhance companies' credibility, making it appear to investors that the companies are in compliance with the United States' corporate governance standards.
  
  Section::::Reasoning.:Ease of obtaining public status.
   Foreign people are taxed only on certain items of income, including effectively connected income and certain U.S. source income. Foreign persons, however, are not taxed on most capital gains. Internal Revenue Code section 897, as enacted by FIRPTA, treats the gain on a disposition of an interest in US real property as effectively connected income subject to regular federal income tax.
   BULLET::::- An interest in property is any direct equity interest in the property, such as a fee simple ownership, but does not include interests solely as a creditor. Thus, co-owners of property each hold an interest in the property, but a bank holding a mortgage does not.
   Another recent variant (the Foreign Invested Commercial Enterprise FICE) of the WFOE has also come into effect, and are used mainly for trading and buying and selling in China. The registered capital requirements for a FICE are lower than for a WFOE as the FICE does not need to fund plant and machinery acquisitions.
  
  Section::::Advantages.
  
  WFOEs are among the most popular corporate models for non-PRC investors due to their versatility and structural advantages of a representative office or joint venture.
  
  Such advantages include:
   Almost 80% of foreign-born U.S. residents owned a home in 2009, according to the National Association of Realtors. The national homeownership rate at that time was 65.4%.
  
  Section::::Taxation.
   Section::::Real property rights.
  
  An investor who wants to invest or develop land or property in China must bear in mind China's property laws, most notably the property law introduced in 2007, which for the first time protects the interest of private investors to the same extent as that of national interests.
  
  Section::::Real property rights.:Types.
  
  Real property rights in China can generally be grouped into three types. The first type is ownership rights. The second type is usufructuary rights, and the third is security rights.
  
  Section::::Real property rights.:Ownership rights.
   Land supply has a significant impact on house price fluctuations while demand factors such as user costs, income and residential mortgage loan have greater influences.
  
  Section::::History.:International Investment.
   Section::::Philippines.
   With changes in the law, it becomes possible to merge with a Chinese company for a quick start. A foreign investor does not need to set up a new corporation in China. Instead, the investor uses the Chinese partner's business license, under a contractual arrangement. Under the CJV, however, the land stays in the possession of the Chinese partner.
   Section::::Disadvantages.
   International real estate is best subdivided into two categories: international commercial real estate and international residential real estate. Some examples of international real estate transactions are:
  
  BULLET::::- a citizen of one country purchases a house in another country
  
  BULLET::::- a corporation headquartered in one country purchases or leases an office building in another country
  
  BULLET::::- a corporation or investment group in one country builds a hotel in another country
  
  Section::::International commercial real estate.
   If a person wishes to initiate international real estate investment for the individual’s or the institution’s portfolio, the person or financial manager may consider multiple avenues. The indirect method of entering international real estate investment may involve passive investment in securities that are based on international real estate 
  
  collateral or passive investment in international real estate service firms and offices. The direct method of entering international real estate investment may involve total 
  
  acquisition or partial acquisition of the foreign property.
   The United States federal government, on the other hand, was pursuing a more friendly approach to the Chinese government. In 1868, the governments of the United States and China agreed on the Burlingame Treaty, whereby China was granted most favored nation status for trade, and both countries would freely permit immigration of the citizens of the other country, but with no promise of a path to citizenship. Indeed, the Naturalization Act of 1870 explicitly restricted naturalization to blacks and whites, though citizenship at birth was still open to all (as would subsequently be affirmed by the Supreme Court in "United States v. Wong Kim Ark").
   Section::::Indonesia.
   A major increase in international real estate investing has been taking place between China and the United States. In the U.S., the Chinese are now the largest foreign buyers of homes, accounting for $28.6 billion of sales in the 12 months ended March 2015, according to the National Association of Realtors. There are three major reasons why Chinese are investing in the US real estate market: investment diversification, overseas education of their child and immigration.
   Before 1981, foreign people (nonresident, non citizen individuals, and non-U.S. corporations) often were exempt from U.S. tax on sale of real estate in the nation. Congress passed FIRPTA to require all foreign people to pay tax on dispositions of any interests in U.S. real estate. The law specifically provided that its provisions took precedence over any existing tax treaties that provided otherwise.
  
  Section::::Persons and property subject to tax.
  
  Foreign persons are generally exempt from U.S. tax on capital gains.
  
  Under FIRPTA, however, foreign persons are subject to tax on gains from disposition of U.S. real property interests (USRPIs).
   Section::::Reasons.:Financial security.
   An example involving nationality by birth in "jus soli" countries, including the US, would be that if a child was born in the United States by two Chinese-national parents, and one of them has already acquired US permanent residency, but the other one has only temporary status in the US (e.g.: F-1 or H-1B), then the child "is not" a Chinese national at birth since one of his parents has settled abroad and he acquired a foreign country's citizenship at birth (in this case, the child is a US citizen at birth). However, if the parent with permanent residency had completed the naturalization process as a US citizen prior to the child's birth, then the child acquires Chinese nationality at birth, since his or her other parent has not settled abroad and "is" a Chinese national (although the parent with US citizenship has already lost his or her Chinese nationality). 
   Section::::Dual nationality.
   BULLET::::- Key differences were noted from "Chew Heong v. United States" (1884) and "United States v. Jung Ah Lung" (1888). In both cases, the decisions were made based on the goal that, unless unavoidably, the acts or amendments in question should not apply retroactively. However, the Geary Act was clear in its statement and intention and provided clear instructions to Chinese citizens regarding how to obtain the certificates of residence, for which they had time "after" the passage of the Act.
   There is no provision in Chinese nationality law regarding the "involuntary acquisition" of another country's nationality can cause the loss of Chinese nationality. An example would be a Chinese woman marries a man from a country observing "jus matrimonii" (e.g. Iran), in which case she automatically becomes an Iranian national upon marriage.
   BULLET::::- During the term of the venture, the foreign participant can recover his investment, provided the contract prescribes that and all fixed assets will become the property of the Chinese participant on termination of the JV.
  
  BULLET::::- Foreign partners can often obtain the desired level of control by negotiating management, voting, and staffing rights into a CJV's articles; since control does not have to be allocated according to equity stakes.
  
  Convenience and flexibility are the characteristics of this type of investment. It is therefore easier to find co-operative partners and to reach an agreement.
  