Let me start by saying that I have nothing against China or the Chinese people. What I am fixing to talk about is bigger and far more encompassing and quite frankly it’s not about the Chinese people either. It’s about governments and their desire for control and expansion. It’s about the second-largest economy in the world. It’s about people in general not paying attention to what’s really going on around them – which is hard to do, as there is a lot of noise coming our way these days. Sometimes it’s hard to get a clear channel on anything.
Mainstream media is good at distracting people from what’s really important and needs our attention or consideration, by providing us lots of other crap to focus on. Right now one of those focuses is North Korea, Iran and Syria, as well it should be. But, we better not lose sight of the sleeping giant panda or fire-breathing dragon – however you choose to look at it. I’d be willing to bet there is a legend somewhere that tells the story of how one became the other . . .
Most of us are aware that we , the United States, owe China an immense amount of money — in the ballpark of $1.3 trillion, if my sources are correct. The U.S. government continues to borrow from them.
The Chinese have also been buying a considerable amount of U.S. assets over the past decade, with projections in U.S. investments of $15-20 billion a year over the next decade. They appear to be focusing on acquisitions in energy, financial services, food production, real estate, and manufacturing, as well as entertainment and technology. The Chinese own One Chase Manhattan Plaza and the General Motors building, in New York – both nice commercial real estate coups for sure. They own all the AMC Theaters.
Most of these assets are owned by the Chinese government, under various state-owned entities. China needs energy to fuel their rapidly growing industrial development, and have purchased power assets in Portugal, Brazil and the Philippines. They had an unsuccessful attempt to buy the U.S. oil company Unocal in 2005.
The Chinese government also purchased private equity assets that fund GM pensions, if I understood correctly. I want to do some more research on that, & a few other things. I have so many questions. Though these are my opinions, I do try to thoroughly research topics I am interested in, verifying my info with several sources. Most of this information came from sources like Reuters, Market Watch, LA Times, USA Today, Business Week, and Forbes – encompassing a variety of agendas.
There is concern about China’s foothold in technology and possible breaches in our national security. Some analysts think that it’s in China’s best interest to stay friendly with us, as our markets thrive, so do Chinese investments. But what if their overall strategic goal is to control or even own the U.S. in some unknown manifest destiny design. They have quite an established growing assertive military presence, as well. Regardless of what might happen, I would not want to be at the mercy of a Communist country.
A month or so back I happened across CNN doing a piece on The Guardian’s Predictions for the World in 2014. Predictions shared involving China were:
- China will eventually be the world’s largest economy.
- Though Western brands will continue to dominate, China will own them.
- U.S. will soon celebrate Chinese holidays.
- Western politicians will clamor for Chinese investors.
I don’t know, maybe it’s just me, but I find all of this a little disconcerting. I am not a political person, nor do I know much about economics. I realize the world is now a global economy, but maybe the U.S. is a little too open for business? And why do we do so much business with China, in particular? The government does not allow any partnering with them involving NASA, spaceflight, or manned exploration – but then again there is considerable technology involved in those endeavors and International Traffic in Arms Regulations (ITAR) come into play.
I will be writing about this again, as I have so many questions that are not answered and concerns I wish to address. I also did not want to make this post to awfully long, as I have lots more data to share. I would love to hear what you think about this, too. Is the giant panda a good business partner or a wolf in sheep’s clothing?
Anyway, just something I’ve been thinking about . . .
** I watched a most interesting program quite a few years back about China – I have been keeping an eye on this development for quite a few years now – their growth, increase in consumption, and interdependency with the United States. In all honesty, it was a bit disconcerting. This link no longer shows the ABC News/Bob Woodruff video, but you can read the accompanying story.