Sunday, December 12, 2010
China's "buy American" in three ways.
<P>: Http://finance. News, China is the world's foreign exchange reserves, as Japan in the 1980s, as more and more dissatisfied with the interest rate on hold less than 6% of U.S. Treasury bonds, and further to .into the impact of foreign exchange, but for the time, but it is careful, for fear of repetition of "Japanese criticism" of the lesson. .</ P> <P> According to "China Times" reported that China holds 1.2 trillion dollars foreign exchange reserves, but the details kept secret, according to independent estimates, the foreign exchange allocation ratio is around 70% in U.S. dollar assets, 20% .euro assets, the other 10% including the yen and the won currency, including other assets. .</ P> <P> the United States, China, the disposal will have a significant impact on foreign exchange reserves, China's current dollar foreign exchange reserves is the form of U.S. Treasury bonds, which is considered the world's safest, but also the lowest return on investment. .China is the second largest U.S. debt buyers, debt held by about 414 billion U.S. dollars, accounting for total liquidity of U.S. Treasury bonds by 10%. .</ P> <P> officials in Washington and the bond market's biggest fear is that China will one day sell-off, and trigger a bond market sell-off frenzy to hit the U.S. economy. .April this year, China sold 5.8 billion debt, the largest in seven years, is considered the international holdings of U.S. Treasury trial balloon, almost touch the alarm. .</ P> <P> Deputy Treasury Secretary Kimmitt was Jifu China, not to negotiate the sale, the United States worried that after China, the Middle East, Asia, Central and South American countries are also part of the holdings of U.S. Treasuries, which will cause .Treasury bond market out of control. .</ P> <P> bonds and domestic interest rates in the United States standards, and domestic debt affect the level of interest rates, including mortgage and business loan interest rates, which would affect the economic fundamentals of the U.S. election year. .However, the current reality of international politics and international economy, China's massive holdings of government bonds to, or reduction of U.S. dollar positions, is almost impossible. .China to buy the United States must take a more circuitous way. .</ P> <P> holdings of U.S. Treasuries, the legend is to raise China's new foreign exchange investment company established a relationship of capital, which is managed by the company the total size of foreign reserves, will reach 200000000000-3000 .billion. .May this year, the company agreed to invest 30 billion to buy 9.7% of the Blackstone private equity fund non-voting shares, which triggered the attention of Congress, a legislator and the Ministry of Finance and the Department of Homeland Security overhaul Blackstone assets, there is no information on arms .master satellite manufacturing and technology-related companies. .</ P> <P> theory, the Treasury Department Foreign Investment Committee of foreign investment if it is proved the risk of national security, you can review the cancellation, just two years ago, CNOOC acquisition of Unocal oil company, and Dubai Ports World acquisition of U.S. .have caused political uproar, but China is very careful this time. .</ P> <P> first of which is through the state foreign exchange investment company, investment targets in addition to Blackstone, as well as U.S. Treasury bonds, using the foreign exchange allocated to the Ministry of Finance, no money, unsolicited sales of arms, even if .Yes, it is difficult to check out, and have been included before the Government of Singapore Investment Corporation and the Abu Dhabi government investment company Blackstone's investment funds. .</ P> <P> Second, China's stock was "non-voting", in other words, any of Blackstone's investment decisions, in theory, has nothing to do with China, China will not have any investment company, after the establishment from the Blackstone .The first shot of the Hilton Hotel at 260 million acquisition of view, Blackstone also want to maintain a low profile, do not touch the politically sensitive undertaking. .</ P> <P> third way to buy American, is the result of China's "old friend", like the News Corporation's Angela Merkel, Beijing, on his influential Merkel indirectly also affect the purchase of assets .force. .</ P> <P> News Corporation to buy the Wall Street Journal recently, although the uproar caused by discussions, the newspaper alleged that he would do was vulgarization, but it is hard to oppose on other grounds, if it is directly in China to buy U.S. media, the results could be disastrous. .</ P> <P> Merkel in China and investment cooperation between the program more and more common, perhaps the beginning of the Chinese are asking more than Merkel, Merkel also need to enter the Chinese market, but the future balance .will be upside down, the state foreign exchange investment company such as News Corporation to invest, do not do it? .Merkel will have a steady flow of Chinese money, he loves what to buy and what to buy, the U.S. Government can not be in charge of. .</ P>.
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