They are usually after an internationally known brand name, although it seems in the end they are too cheap to pay market price for the brand name. Read more at the China Law Blog
This is most definitely worth a read
Full article at http://www.chinalawblog.com/2011/04/chinese_companies_buying_us_companiesnames_in_bankruptcy_that_makes_sense.html
Here’s the introduction
Chinese Companies Buying U.S. Companies/Names In Bankruptcy. That Makes Sense.
A couple years ago, my law firm represented a Chinese creditor in a United States bankruptcy. This Chinese company had for many years made figurines for the large U.S. company that was no in bankruptcy. These figurines cost very little to make (in China), but they had quite the following in the United States where they sold at retail for well over ten times their production costs.
When the United States company went bankrupt, one of our jobs as lawyers for the Chinese company was to look into purchasing the trademark and other intellectual property for the figurines. We eventually succeeded at this and the Chinese company is now the proud owner of all the makings necessary for a vertically integrated figurine company, and at a price way under it would have needed to have spent for such assets outside of bankruptcy.
In my firm’s experience in dealing with Chinese companies seeking to buy American companies, the Chinese company is usually primarily interested in acquiring the brand name, but virtually always fails to do so because it is just not willing to pay what is required for the name. Put simply, American companies generally put a much higher premium on American brands than do Chinese companies.