As China Invests, U.S. Could Lose

Source: The New York Times

SHANGHAI — For three decades, wealthy nations have invested hundreds of billions of dollars in China, helping drive one of the most remarkable economic booms in history.

Now, China is poised to return the investment favor. The question is whether the United States will be willing and able to fully participate, according to a new study to be released Thursday.

Flush with capital from its enormous trade surpluses and armed with the world’s largest foreign exchange reserves, China has begun spreading its newfound riches to every corner of the world — whether copper mines in Africa, iron ore facilities in Australia or even a gas shale project in the heart of Texas.

The study, commissioned by the Asia Society in New York and the Woodrow Wilson Center for International Scholars in Washington, forecasts that over the next decade China could invest as much as $2 trillion in overseas companies, plants or property, money that could help reinvigorate growth in the United States and Europe.

Read more: http://www.nytimes.com/2011/05/04/business/global/04yuan.html?partner=rss&emc=rss&pagewanted=all

Thanks for the thread, alp.

China has paid great attention to its national security needs over the last decades. It is now a veto-wielding UN security council member. It plays an important role in other international institutions. It is the world's second largest economy, and is closely interconnected with the economies of potential adversaries. China's leaders have implemented a sound strategy for national security.

The concern I have is that as China increases its international profile via multinational firms, will it shed its non-interventionist foreign policy? I hope not. Regardless of its faults, China has helped strengthen international stability.