Posted on 06/29/2004 6:20:23 PM PDT by neutrino
DOBBS: Still ahead here tonight -- the investment rush to China has hit a new level tonight. We'll have that story for you. China's latest gain coming at the expense of, guess what, the United States. We'll have that special report next.
(COMMERCIAL BREAK)
DOBBS: Stocks today barely moved on Wall Street: the Dow down 15; the NASDAQ down almost 6; the S&P fell a point.
Startling new numbers tonight on a changing trend in foreign investment affecting this country and you and me. Christine Romans with the story -- Christine?
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, companies rushed to invest in China last year, and China overtook the U.S. in foreign direct investment.
China attracted $53 billion in foreign direct investment last year according to the OECD; $40 billion came to the U.S., dramatically lower than the 72 billion the year before. Exclude tax haven Luxembourg, and China now tops the list of foreign direct investment.
Analysts say companies are simply eager to cash in on China's cheaper labor and raw materials. And companies are cutting back their investments in the U.S., Japan, Britain, and Germany, Lou.
DOBBS: More good news on the Chinese/U.S. relationship. Christine, thank you. Christine Romans.
Still ahead -- the results of our poll tonight. And a reminder to check our Web site of the complete list of more than 800 companies that we've now confirmed to be exporting American jobs. CNN.COM/LOU.
(Excerpt) Read more at cnn.com ...
Notice that China has now edged out the U.S. in foreign investment.
Can we support our global commitments in such an environment?
Consequences, my FRiends. I fear we face quite a banquet of them.
If you want on or off my offshoring ping list, please FReepmail me!
It is dangerous to farm out important manufacturing into (un)friendly camp. My dog learns faster.
Foreign direct investment. There is a big difference between that and overall investment.
Their already strong economy will get stronger; ours will get weaker.
I think you mean our capitalist fifth column keeps getting stronger in China, and our GDP keeps growing, too.
Truly. And as China becomes more tempted to flex its military muscles, this scenario could easily play out.
Um? And their military gets stronger. So does their manufacturing base. And our manufacturing base becomes weaker.
Now what happens if we get into conflict with them? We have problems producing sufficient ammunition in a war with Iraq. Whatever would we do in a conflict with China?
,,, the returns from investing in China can be astronomical, but the risk can be too. Euro investors know this and are cautiously buying into more Chinese debt. A safer, long term and quite lucrative return since Sep 11 can be derived from premium funding in markets outside China. There's more than one way to skin a cat and get to keep one of it's nine lives.
We manufacture more goods now than ever before. I doubt that China would want to conduct war with its best customer. If we are having miltary procurement problems I suggest you look at the crooks in Congress before looking at China.
This neo-NEP is the mother of all NEPs. The PRC are quite a bit slicker than Lenin was. They really know how to make the whole thing seem bona fide. If you dare challenge the conventional view on this, the tin foil label starts to fly. But to all the China boosters, I have the following queston. Why is it that the CCP still has power of denial over any and all economic activities? And why do we still need to constantly grease the palms and kowtow? And the final question, do the Communists collect taxes or not? End of discussion....
Long term, the PRC plan to sell more to fellow Asians and to Europe than they ever could hope to sell to us. They really no longer need us, now that they have our capital, hold the paper to our debt and have our technology. Now shall begin the long squeeze - it's gonna hurt bad!
No American can "own" a company in China. They may operate it but the Chinese retain total control. Without massive bribes to officials there would be no company. Hence the officials are the "owners". Also, he told me that their judicial system does not follow any laws. Any appearance before a magistrate comes down to solely his decision. He does not look for precedent. At any time they can confiscate or punish without recourse.
That right? Why, then, does our trade deficit continue to expand? Why do I find a vast array of Chinese goods in the markets, but few American goods?
Truly. And somewhere in there, China just might want to grab Taiwan. That loss will mark a transition for America, from single superpower to has-been.
A defeat brought to us be free-traitors everywhere.
Because we have the largest most vibrant economy, and generate the most wealth.
Why do I find a vast array of Chinese goods in the markets, but few American goods?
Probably because you are buying at the low end.
China, The World's Factory.
Um-hmm. And that's why we have ever more debt, right? It's why we owe more to China, isn't it? It's why we are net exporters only in the areas of aircraft, aircraft parts, and agricultural products - right?
Why do I find a vast array of Chinese goods in the markets, but few American goods?
Probably because you are buying at the low end.
Cute. But the simple truth is that the world's manufacturing center now resides in China.
The Chinese dragon is getting stronger day by day - and free traitors are feeding it.
"Stroke of the pen, law of the land. Kinda cool."
You don't suppose China could do that too, do you?
Free traitors - selling America out for cheap junk from China.
Your friend is being taken to the cleaners.
His first mistake is having a partner in Hong Kong. The suitcases full of money is not necessary to do business in China and whoever your friend's partner is, he is having a reall grand time with your friends money.
If he is doing business in Shenzhen (Southern China across from Hong Kong), then perhaps bribes can be a way of life but his next biggest mistake is setting up shop in Shenzhen.
I don't know who told him an American can not own a business in China. Sounds like a BS line your friends partner gave him to keep him in the dark and help him part with his money or his business. There are plenty of wholly owned foreign enterprises in China - many of the American. And you don't need a Chinese partner. Any company that got started that way paid dearly to get out of the joint-venture. The "officials are the owners" is true only if you set it up that way.
As for courts, they do have a procedure and if you follow it, you can win. Certainly you can do things to influence a decision or speed it along but you can prevail. It can be a real landmine though - but then, so is court in the U.S. The can seize bank assets and hold them pending the outcome of the case.
Your friend needs to look to the Shanghai area where it is less corrupt and the rules are generally followed. He needs to do some due diligence on his partner or better yet, lose him. He will think he can not do that because of what he has already invested but that amount, no matter what it is, will seem small compared to what it will cost him if he continues along the lines you describe.
My guess is China is buying US government debt, so why don't you tell your buddies in Washington, especially the Republicans to stop spending so much? That's more of a threat to America than Chinese manufacturing. Other than that, your fears are unfounded.
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