6/06/2024

China's overseas investment would only go to friendly states

 The Indians must understand why China is having a trade surplus with them. China is exporting more to India while India has nothing to offer other than raw materials which the Indians are trying to curtail ironically. It is the same with the USA vs China trade issues.

The USA lost its industrial base and have nothing to offer to the Chinese, while importing billions from China to stock up the shelves of Walmart and others, even high-end products made in China. The USA even have to pay China to refine products for them to be usable. And the USA is blaming China for running up trade surpluses year after year.

When China started recycling those surpluses into investments and loans to countries around the world jumping on the BRI wagon, it was not to the USA's liking. Those surpluses could have been invested by China by buying more treasuries and bonds which the USA would relish, and China is not doing it. So, they have to find a way to stop China by demonizing the BRI with the 'debt trap' narrative. It failed to work. Not when there are infrastructures to show in return for those loans.

China is in the process of de-coupling from the USA and perhaps from the EU as well. Further investments in USA treasuries and building factories in USA and Europe is not on China's agenda today. China is investing in the Global South countries instead, like Brazil, Mexico, some friendly European countries like Serbia and Hungary, Russia of course and countries in Africa and ASEAN as well.

The AIIB and the BRI hit the underbelly of the USA and the West and yet they are erecting hurdles to keep Chinese investments out. It will be a blessing in disguise for the Global South countries.

With regard to Chinese investments in India, I think the Chinese are taking the same stand as not investing in USA and Europe, due to geopolitical reasons. They are countries deemed not investible.

Anonymous

2 comments:

  1. Africa, South America and South Asia is telling China to invest in their territory. They welcomed that, after tasting the benefits of the BRI. They know China's sincerity in helping them, not just lip service and empty promises.

    Wonder how that India/Middle East/Europe Corridor is doing? Or just vanished into thin air. Of course, hot air will vanish into thin air.

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  2. The problem is that some politicians fart through their mouths rather than their arseholes.

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