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China's Big Money Diplomacy
One Belt, One Road, One Boondoggle?
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  • Suzy Dixon

    It’s really not a surprise. China’s banking sector is weak, debt large and growing, and the SSE and SZSE are mostly populated by speculators (for a good reason). The reason being, the SSE and SZSE are meant to primarily benefit SOEs, so investors have very little control over them anyway no matter how much they invest. Look at Chinese FDI flows. Much of it “roundtripping” from china to HK, and then back into China part of the Ponzi schemes to keep GDP and investment artificially high.

    • Jim__L

      Are American companies in any position to step in and show them how it’s done?

      • Suzy Dixon

        Well, not so much. Certainly not in the SSE or SZSE. In fact, participants in this Silk Road initiative are having double trouble. Over the last couple of years they’ve found it increasingly difficult to work with people because they [people in these other countries] know that these infrastructure projects are simply meant to allow Chinese exporters to better access and take over their markets. And then there’s the issue of increased capital controls, both inflows and outflows, and unpredictable enforcement of regulations.

  • ljgude

    China pushes out from the center and OBOR certainly is consistent with its long history and could indeed bring modernity and prosperity to South East and central Asia. I think the SE Asian countries like Vietnam and non Muslim countries like Nepal may benefit from Chinese led economic integration, but it remains to be see if the central Asian Muslim countries are any more amenable to modernisation. That they don’t have the money right now may cause the project to founder or not. The key take away is the reminder that the Chinese are no better at backing winners than anyone else and have a penchant for “state-driven, politically motivated, and commercially dubious deals.”

    • D4x

      adding that many of the construction projects seem to also be a good way to employ some of those extra young men without hope of marriage due to the One-Child legacy, and the dam projects are integral to China’s riparian dominance over India and much of SE Asia.

  • Dhako

    Again the geniuses who write for this parish show their lack of complete understanding about China’s long term game plan, even if they show their envious color about what China is about to US, in-terms China being a singular strategical competitor to the US, who to boot could out compete in raw economical muscle and investment against the US in places in central Asia, which is where the bulk of these Chinese FDIs are destined for. In other words, the said “Belt-and-Road-Initiative”(BRI) investment may have slowed down this year (compared to the previous years), but it has largely to do with the fact that the bulk of BRI’s investment for this year are being readied for this upcoming meeting. While on the other hand, the previous years have almost completed their allotted investment. Which means, starting from next year, we will have the same level of activities and investment of previous years, once this upcoming meeting signs off the projects that will be invested.

    Hence, if you seriously wanted to make a comment about what China is doing, it would not have heart “your credibility” (not that you have any to begin with particularly when it comes to commenting about internal policy discussion of China) to know what is really going on, before you start shooting the breeze with a tendentious guff of the kind you have alleged in here. Moreover, remember when I have told you few days ago, that, it seems that the best and the brightest “strategical theoreticians” in which this Parish have, as “scribblers”, particularly when it comes to “commenting” about the bulk of Asia (and in China in particular) this is precisely what I had in mind.

    And by that I mean, you just saw a slow-down of investment in this year by China in the “One Road One Belt” (OBOR) which otherwise are know as the “Belt-and-Road-Initiative”(BRI) and you thought, hurrah, China is having a difficulty in her strategical objective in this issue. When in fact, if you knew anything about what is being taking place about China’s approach to the BRIs investment you would have known, that, the real reason for that slow down is nothing but a mundane reason that has largely to do with the availability (or lack of it) of a “signed-off” projects that are ready to be invested at the “recipient end” states, which in turn will be sort it out within this upcoming meeting in Beijing. And therefore, this in turn will mean, that, the “investment activities” of these BRIs will return the level of activities to where they were in the previous years, which were when the investment were heavy in various areas of China’s outgoing investment in these OBOR states.

    But, then, it seems, that, your usual prejudicial rant against China is already cooked-up and is already in the top drawer, and therefore, all it is waiting for is a negative news about what China is doing around the world that could come through the wire-service, (such as WSJ and FT) and voila, you can attached that “precooked” cheap rant of yours at the end of whatever negative slanted items that news-service was carrying, and then, lo-an-behold, you have (in your judgement) a commentary about what China is doing or it’s about, which in turn, your knuckle-dragging mouth-breathing Mr Trump’s plebeian supporters (who congregate in here) will then nod, vigorously, in agreement with you.

    • Observe&Report

      废话多,细节少。True to form as always, Dhako.

  • Pete

    Come on. This is a Chinese pipedream.

    Even if built, it is a costly way to transport goods and is open to disruptions in many places.

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