China spreading its riches to every corner of world
Sunday, 8 May 2011
Fazle Rashid
NEW YORK, May 7: Multinational companies in last three decades have invested billions of dollars in China helping it create a fairy tale story about the most remarkable economic booms in history. China is now ready to return the courtesy. Flush with money earned through its enormous trade surpluses and armed with world's largest foreign exchange reserve China has "begun spreading its riches to every corner of the world." A recent study revealed that China would spend as much as $2.0 trillion in foreign investment over next ten years. The United States risks missing a large chunk of investments because of political rivalry, an analyst said. China over the past few years extended billions of dollars in loans to developing nations thus putting relevance of multilateral funding agencies like the World Bank, IMF and ADB into big question. China has allowed its state owned companies to acquire share in global powerhouse like Morgan Stanley. China is a major player in global debt markets holding about $1.6 trillion in dollar denominated assets. China's offshore investments have been very low. China invested $59 billion in overseas investment in 2010 compared $300 billion by the US, said New York Times in a recent report. China's foreign investment could soar to as much as $200 billion within a year. China and the US -- two most wealthiest nations in the world -- hold two parleys every year to iron out their differences. One such meeting is billed for Monday in Washington. Beijing will ask for greater access to US markets and the United States will push Beijing to liberalise its financial system. This is seen as a crucial meeting. Both countries at the meeting are represented by senior army officials and diplomats. Our goal is to create greater understanding around issues that have the potential for miscalculation and inadvertence in our relations, a senior state department official was quoted as saying. The vexing question of China undermining the value of its renminbi will also come up for discussion. China said its currency has appreciated ten per cent since June. China is asking the US to fix its growing public debts.
NEW YORK, May 7: Multinational companies in last three decades have invested billions of dollars in China helping it create a fairy tale story about the most remarkable economic booms in history. China is now ready to return the courtesy. Flush with money earned through its enormous trade surpluses and armed with world's largest foreign exchange reserve China has "begun spreading its riches to every corner of the world." A recent study revealed that China would spend as much as $2.0 trillion in foreign investment over next ten years. The United States risks missing a large chunk of investments because of political rivalry, an analyst said. China over the past few years extended billions of dollars in loans to developing nations thus putting relevance of multilateral funding agencies like the World Bank, IMF and ADB into big question. China has allowed its state owned companies to acquire share in global powerhouse like Morgan Stanley. China is a major player in global debt markets holding about $1.6 trillion in dollar denominated assets. China's offshore investments have been very low. China invested $59 billion in overseas investment in 2010 compared $300 billion by the US, said New York Times in a recent report. China's foreign investment could soar to as much as $200 billion within a year. China and the US -- two most wealthiest nations in the world -- hold two parleys every year to iron out their differences. One such meeting is billed for Monday in Washington. Beijing will ask for greater access to US markets and the United States will push Beijing to liberalise its financial system. This is seen as a crucial meeting. Both countries at the meeting are represented by senior army officials and diplomats. Our goal is to create greater understanding around issues that have the potential for miscalculation and inadvertence in our relations, a senior state department official was quoted as saying. The vexing question of China undermining the value of its renminbi will also come up for discussion. China said its currency has appreciated ten per cent since June. China is asking the US to fix its growing public debts.