Hey all :)

Some of you who keep your ear to the business ground (not me, usually) may have heard that China is about to launch its first major government investment foray into foreign markets (in case you've been living in a cave for the past 20 years, you know that we've been sending them boatloads of money, at an increasing rate, in exchange for all those boatloads of plastic toys, textiles, toothpaste, etc, and they now need to find *something* to do with it ;) ), the so-called China Investment Corporation, headed by two heavy hitters in the Chinese finance apparatus.

There's a good article in Der Spiegel today discussing the possible ramifications of a China, with its now massive financial clout and authoritarian, repressive, and environmentally horrific record, becoming a major player in worldwide investing. When push comes to shove, are cash-strapped countries, companies, and investors going to care how bloody the investment money is that is being offered them, or with what hidden and not so hidden strings it comes? A telling quote:

Not surprisingly, Western fears have been fanned further by the bizarre cloak-and-dagger secrecy surrounding the Chinese government investment portfolio. When asked to comment on the CIC's objectives, a manager responded: "Do you think I want to die?"

If folks ever wondered what the exponentially increasing slope of the US-China trade deficit was leading to, the sound that accompanied the formation of the China Investment Corporation could very well be that of the other shoe dropping.

Article here: http://www.spiegel.de/international/business/0,1518,509660,00.html

Regards,
Nydia

An old Chinese Proverb comes to mind:
A fool and his money, are soon parted.....

They can save the US housing market and buy up all the commercial buildings like the Japanese did.

On the surface, it's kind of scary.

However, keep in mind that China probably wants to maintain the status quo as much as we do. They are as dependent on us as we are on them.

Isn't this CIC thing mandated from the WTO ?

The wind is blowing a different direction. The future is in Asia, until, like Europe, it tears itself apart. Then maybe the wind will blow back to the West.


Whatever. Either way, the economic powerhouses are rising in the East, and we have to learn to deal with it. Perhaps with money might come humanitarian responsibility. I'm doubing it - though.

I'm one of those people who are very scared of the Chinese.

Economic powerhouses are good.

This isnt Mercantilism. As long as we arent stupid and spend trillions of dollars in some insane folly instead of improving infrastructure, staying trade friendly and keep out of exorberant debt.. we should be just fine, and share in the prosperity..

oh... wait..

SUNOVA...

FUCK!

I'm one of those people who are very scared of the Chinese.

I am not scared of the terrorists.
I AM scared of the Chinese too. :(