Chinda suddenly buying a large chunk of resources

[240 is Back]

They won't talk about the missile test, and today announced it's gonna buy a great deal of foreign resources.

What are they up to?


Beijing to diversify investment strategies
By Richard McGregor in Beijing

Published: January 21 2007 19:35 | Last updated: January 22 2007 03:21

China is to diversify the use of its swelling foreign exchange reserves, a policy change that is likely to mean a rise in investment in overseas securities and more purchasing of foreign technology and raw materials.

Wen Jiabao, the premier, said after a top-level meeting on finance reform at the weekend that Beijing should improve the management of its foreign reserves and explore ways to diversify their use.

The policy switch opens the way for China, which has been largely passive in managing its money, to establish an agency – akin to Singapore’s Government Investment Corporation and other state investment agencies – to handle a portion of its reserves, already the world’s biggest.

http://www.ft.com/cms/s/07448d3e-a985-11db-9185-0000779e2340.html

[GroinkTropin]

China's economy exists soley because of mass manufacturing at cuthroat rates-IE they have sold out the majority of their population to slave labor. This of course= unhappy chinese masses. They'll fall sure as I'm sitting in an uncomfortable metal chair, just give them time. You can oppress a population only for so long...

[headhuntersix]

Its better,at this stage anyway, then having thiose rice propelled sobs marching across Asia and taking it.

[GroinkTropin]

Its better,at this stage anyway, then having thiose rice propelled sobs marching across Asia and taking it.

Very true.

[Hedgehog]

China's economy exists soley because of mass manufacturing at cuthroat rates-IE they have sold out the majority of their population to slave labor. This of course= unhappy chinese masses. They'll fall sure as I'm sitting in an uncomfortable metal chair, just give them time. You can oppress a population only for so long...

No, you're wrong.

A big reason why their economy is booming, is due to their currency yuan being undervalued, hence giving a big leverage to their export.

Another reason is the joint venture system, where foreign companies are allowed to establish in China, but in partnership with the Chinese State, which gives several pros, but also means the earnings have to be shared.

The salary is lower in other countries, and one big reason why China is growing, is because of all the Western Companies wanting to establish there, and wanting a piece of the Chinese market, since the average Chinaman is improving his economy fast. Lots of investments in China, a hot item.

-Hedge

[Hedgehog]

They won't talk about the missile test, and today announced it's gonna buy a great deal of foreign resources.

What are they up to?

They're not SUDDENLY buying.

Last year, they tried to buy part of an oil plant in Nigeria, and they've been trying to get oil resources all around the world for a few years.

Which isn't that strange, since China is the biggest country in the world, and will have an enormous need for different energy resources in a few years.

I think it's good if they're able to secure as many sources as possible, since that won't put them in a situation that will make them use any force to get more resources.

I like it when there's no storm in China, so to speak.

-Hedge