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To: lelio
You asked a BIG question.

Through the grapevine though...

They are buying up tons of investments in Asia and around the globe. The US only gets a portion of it.

Like I said, this is a very complex question. A whole lot of the money though that spend on Chinese goods never makes it to China. It depends on a whole lot of factors. Like who and what...Its still owned by the CCP, but just in a New York bank account...When they want to buy a port in Singapore they simply do a wire transfer from NY to Singapore and viola. They are piggy backing on our system and relations.

Basically there are two or three major economic 'pushes' that may or may not relate to this specifically.

1) They get money in all sorts of ways to finance large 'development' projects inside of China. Its supposed to create employment in China. (#1 concern in the CCP). More than 2/3 (probably a lot more) of all the cars in China are bought by some form of govt agency. 2)They want to expand their influence around their neighborhood. They bought up investments in Hong Kong (money=power) and are trying to buy in Taiwan. I know they invest in Singapore and Thailand and the Phillippines also.

They snap up these kinds of investments all the time.

They do invest in the US but into what it depends.

They literally are an investor nation...with political intent. The US invests but its the private sector that does it. In China not so. The primary investor is the state.

Keep in mind they will scream and yell about 'the private sector' in China... but in Chinese terms 'private means 50.1% privately owned and 49.9% govt controlled. Truth is the govt is the majority shareholder and they ensure it.

They have started to mix iron grip communist control with private, foreign money.

52 posted on 09/11/2003 11:05:34 AM PDT by maui_hawaii
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To: maui_hawaii
Thanks for the bump.
I'll be the first to admit that I don't have a great knowledge of the currency markets but got an idea from some of my university econ and business classes. RS would scare me as an importer. Evidently s/he doesn't seem to know how important currency exchange rates are to the cost of products...I don't think RS was being overly beligerant to you but they seemed unwilling to try to understand your point regarding the currency. RS is totally focused short-term ability of their product to make money, rather than the long-term ability of their product to make money without the high overhead of constantly switching suppliers (to maintain the low labor costs etc) or the potential of a manipulated market to burst....something it seems many manufacturers are doing. Worse, this could come back to bite investors. When it does, it will be interesting to see who is blamed; there have been plenty of news reports with warnings regarding China's artificially inflated markets and dubious banking 'industry' (which may need yet another bailout).
Let me know if I'm way off on what I've just posted, but that is how things currently appear to me.
62 posted on 09/12/2003 9:33:30 PM PDT by batter (Boycott "Made in China")
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