China – Investment and Economic Policy

June 21, 2020

China – Investment and Economic Policy 

Padmini Arhant

China’s investment and economic policy worldwide in overt and covert Belt and Road Initiative (BRI) and New Silk Road projects in 70 or more countries incentivized with building and modernizing infrastructure such as roads in strategic points facilitating China’s troops mobility and military installations, railways, airports and telecommunication sector besides exclusive access to these nations’ markets is Beijing’s direct economic infiltration evolving into debt entrapment for every one of these nations world over.

China’s strategic strengthening in locations central to United States is noteworthy.

In Asia-Pacific, Darwin port in Australia leased for 99 years to China. In October 2015, the Chineseowned Landbridge Group won the bid for 99 years lease of Port Darwin from Australia’s Central Territory government. Darwin served as military base from Australia, the important ally of United States.

Similarly, the State of Victoria in Australia is signatory to China’s Belt and Road Initiative complicating Australian federal authority’s ongoing trade disputes with Beijing.

In the middle east, China’s approach with yet another United States ally and partner in economic, political and hegemonic goals, none other than Israel granting China 99 years lease on Haifa Port replace United States position in West Asia and Mediterranean sea.

Europe – Germany – The Western State of North Rhine-Westphalia or NRW, is the most severely affected in the pandemic, the deadly corona virus from Wuhan, China. Over a third of all Germany’s cases are there per local news report.

Furthermore, “The State is home to the largest inland Port in the world, Duisburg Port. The Port is a key participant in the Chinese regime’s Belt & Road Initiative, China’s state-backed campaign for global dominance.”

The City’s Mayor once called it Germany’s “China City.”

The public data reveals that at least two-thirds of the world’s top 50 container ports are  owned by the Chinese or supported by Chinese investments, up from roughly 20% a decade ago. Those investments include terminals at major U.S. container ports in Los Angeles and Seattle – Oct 22, 2019. 

These reports confirming China’s foreign and economic policy reining control over crucial strategic sea ports and destinations could no longer be treated as mere economic interests.

China’s expansionism pose greater challenge to United States and the world at large.

China’s latest maneuver in the Himalayas against India and instigating client state Pakistan along side Kashmir border is a political tactic to deflect global attention from the pandemic – the corona virus COVID19 consuming lives at an alarming rate and causing economic collapse to which Beijing is responsible and accountable to the entire world population. 

Containing China:

The resignation among political and economy pundits on turning the wheels away from China in economic activities as non-starter and not doable citing China’s export orientation towards raw materials in agriculture and all consumer items, pharma ingredients, electronics parts and components and diverse product base comprising basic to intermediate goods necessary for final product is myopic ignoring the big picture that led to status quo on China’s economic and military superiority. 

What the world need to recognize is prior to China’s emergence as global manufacturing hub roughly three decades ago, there were options available to global consumers with goods manufactured locally as well as in different parts of the world and regions that enabled market economy competitiveness without dealing with currency fluctuations rather manipulation imposed by China in renminbi (China’s currency) devaluation as and when suitable in China’s favor.

China luring foreign investments appropriately offshore companies production units and factories with Chinese investments in infrastructure settings and human capital showing little or no concern to labor and environment laws created dependency on Chinese imports world over.

China’s consistent infringement on intellectual property rights and patent laws costing corporations and original providers in the economies immense financial liabilities bear no consequences to China resuming business as usual. The ethical implications and proprietary rights are considered meaningless and completely slighted by China in the absence of strong measures and actions from international consortium and governments prioritizing trade deals lagging in many aspects that has contributed to an established pattern and bad precedence in the global economy. 

The multinational companies along with big, medium and small businesses are incentivized with cheap oveurheads including production and labor costs making the affordability factor enticing to end consumer across the globe. 

Notwithstanding the grim reality on domestic workforce losing blue collar jobs and manufacturing sector to China. As a result, the employment opportunities shifted to China depleting domestic consumer power.

The economic drive from China promoting Made in China goods and services available worldwide hurt all economies regardless of GDP growth and consumer price index due to overwhelming majority in middle and lower income category in any economy deprived of steady income and economic development in the disproportionate advantage to China.

China exploiting privileges such as World Trade Organization membership, Most favored nation (MFN) status with United States, EU and other nations not reciprocated on even keel to nations having minimal to broad trade relations with China.

The trade imbalances with China yielding high deficits to trading partners in the global economy merit review and revision delivering fair and equal economic benefits unlike the current trend enhancing China’s economic gains and profitability. 

China’s perceived economic transformation attracting overseas companies to produce goods with partial or major Chinese financial capital that are invariably tied to Chinese Communist Party (CCP) is in line with Beijing’s political stance on CCP control over system. 

Chinese private sector investments within China and abroad are ultimately state owned assets proved in nationalization of foreign companies production units, brands and ideas neutralizing foreign investors’ stake in the bargain. 

The topic will resume with updates on containing China. 

Thank you.

Padmini Arhant 

Author & Presenter 









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