China Trade 101: Foreign Direct Investment
Aggregated Source: China Venture News
January 22, 2008|
I've seen it discussed in a number of places recently. There are some basic truths about foreign direct investment that seem to get covered up, misinterpreted, distorted - pick your adjective...
When we talk about American investment in China, many Americans spit and cuss and start saying things that sound like the come from the script of Mel Gibson's movie, Conspiracy Theory. They seem to think that greedy American companies have moved American jobs to China. But the truth is that the vast majority of American companies operating in China are there because they want to sell something to the Chinese consumer. Like, say, a Buick. The American companies are really very involved in producing thing in China that can be exported to America.
"Hasn't China become the world's factory?" you ask. Sure it has. But it's our friends in countries like Japan and Korea who are financing that. The Japanese stock market trembles so much at the thought of a US recession partly because it's a double whammy for them. If we stop buying Japanese products it hurts Japan, and if we stop buying Chinese made goods it hurts Japan.
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Copyright China Venture News
When we talk about American investment in China, many Americans spit and cuss and start saying things that sound like the come from the script of Mel Gibson's movie, Conspiracy Theory. They seem to think that greedy American companies have moved American jobs to China. But the truth is that the vast majority of American companies operating in China are there because they want to sell something to the Chinese consumer. Like, say, a Buick. The American companies are really very involved in producing thing in China that can be exported to America.
"Hasn't China become the world's factory?" you ask. Sure it has. But it's our friends in countries like Japan and Korea who are financing that. The Japanese stock market trembles so much at the thought of a US recession partly because it's a double whammy for them. If we stop buying Japanese products it hurts Japan, and if we stop buying Chinese made goods it hurts Japan.
See full article.
Related Entries:
Bootstrappers can have foreign trade role - 07 July 2006
Foreign Investment Up in China - 17 July 2007
Changes in China for Foreign Investment: Real Estate - 12 November 2007
Changes in China for Foreign Investment: Energy Consumption and Pollution - 03 December 2007
Contents of this feed are a property of Creative Weblogging Limited and are protected by copyright laws. Violations will be prosecuted. Please email us if you'd like to use this feed for non-commercial activities at feeds - at - creative-weblogging.com.
Original URL: Click here to visit original article
Copyright China Venture News
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