China Offers Infrastructure Funding & Technology to Rebuild America Under Trump

[rott]

China Offers Infrastructure Funding & Technology to Rebuild America Under Trump
January 2, 2017 eClinik

While incoming president Donald Trump accused China of currency manipulation, among others, during the campaign, China is offering the necessary funding and engineering know-how to build bridges of friendship in America as part of its global New Silk Road and Maritime Silk Road economic outreach programs.

Yes, the offer does look like the absence of tit-for-tat counter-sanctions from Putin after Obama’s “kitchen diplomacy,” i.e. stupid kicking out of 35 Russian diplomats.

But fixing America, and make it great again, require Donald Trump to be bold. That’s because the Khazarian Cult doesn’t want to get any American leader to cozy up with Asia, as that would mean peace in the region. Very bad for the arms business.

In U.S. President-elect Donald Trump’s book, Great Again, he said, “You go to countries like China…and you look at their train systems and their public transport. It’s so much better. We’re like a third-world country.”​

Despite his tough talk, Trump admires China for its GDP growth and for its infrastructure investment and engineering. He sees that, while America is aging and falling behind in certain areas, China is growing and moving forward. The U.S. can learn from China on infrastructure building, and benefit from its successes.

China is leading the world in infrastructure investment and engineering. China’s Beipan River bridge, which connects Guizhou and Yunnan provinces, is a 4,400-feet-long cable-stayed suspension bridge that hangs 1,854 feet in the sky. That is equivalent to 200 stories, roughly the height of four Trump Tower’s stacked.

Another example is Guizhou’s high-speed railway bridge connecting Shanghai and Kunming. This amazing achievement caught the attention of some foreign scholars. Duke University Professor Ralph Litzinger (@BeijingNomad) said, “Serious infrastructure investment in China. Makes the [U.S.] look like a backward country.” Kingston University Professor Steve Keen (@ProfSteveKeen) called it an example of China’s impressive engineering and said Trump “could learn a lot from [China] about infrastructure planning.”

America may be the contemporary example on building a great country, but China is the contemporary example on rebuilding a great country. The two massive bridges in Guizhou are a tiny example of China’s strength in infrastructure investment and engineering. No other country in the world has lifted more than double the size of America’s entire population out of poverty in such a short period of time. Since then, China has opened the Asian Infrastructure Investment Bank, and is building the Silk Road Economic Belt and the 21st Century Maritime Silk Road. These are massive cooperation projects, and the hallmark of modern-day China. Meanwhile, America cannot even realize high-speed rail after years and years of planning. Rather than bash China, perhaps America should learn from and work with China.

Trump wants to spend $1 trillion on infrastructure upgrades in America to rebuild the nation and put people back to work. The problem is how to pay for it and how to do it. China knows how to fund and carry out serious infrastructure building, and deep-pocketed Chinese investors want to invest billions more in America. One way for Trump to realize his plan would be to use Chinese funds and technology. This would help return some of America’s investment in China back to America for the benefit of America, and strengthen the bilateral relationship. Trump’s plan to rebuild America is bold, but it remains to be seen if he will be bold enough to do what is best for America.

Read the full article at https://geopolitics.co/2017/01/02/c...ng-technology-to-rebuild-america-under-trump/

Bro, excellent news. Thank you!!!

 

[ohmrlobalobayeh]

Also, it is my opinion that a nation should never invest too heavily into a potentially hostile state- unless the profits/benefits to be reaped far outweigh the risks.

such as the investment of smartphones plants in potentially-hostile india by Huawei, Xiaomi, Oppo, Vivo, etc.

India has 1.3billion people.

the cheap, low-cost smartphone market for their poor or below middle-class- easily a few hundred million people- is too lucrative to ignore. initial investments could be recovered at a breakneck speed before any potential hostilities break out.

 

[Jlaw]

such as the investment of smartphones plants in potentially-hostile india by Huawei, Xiaomi, Oppo, Vivo, etc.

India has 1.3billion people.

the cheap, low-cost smartphone market for their poor or below middle-class- easily a few hundred million people- is too lucrative to ignore.

I agree that it is not the best interest for China to invest in a hostile country. throughout Chinese history the emperor never really learn. but I guess greed is the driving force behind these decisions.

 

[rott]

I agree that it is not the best interest for China to invest in a hostile country. throughout Chinese history the emperor never really learn. but I guess greed is the driving force behind these decisions.

I think China is just trying to belittle the great USA.

 

[TaiShang]

I agree that it is not the best interest for China to invest in a hostile country. throughout Chinese history the emperor never really learn. but I guess greed is the driving force behind these decisions.

China currently invests about 60 billion USD annually in the US. I guess most of this investment is in the form of mergers and acquisitions. Because US strategic industry market is pretty much closed off to China, investment tends to go to services, such as entertainment and accommodation/leisure.

Europe is a more favored destination for China's investment because better regulations and less hostility. In the end, business is not a charity and Chinese business will chose what is pragmatically more sensible.

If Trump believes that he can twist China's arm and force it to give up on profit making business deals, he is dead wrong. There is a reason why China has initiated the OBOR. US is not the only market. If you check the figures, in fact, US share in China's trade has been in steady decline.

If they want jobs and earn money, they will actually have to work for it. They cannot forever feed on China's savings in the form of debt issuing.

 

[Shotgunner51]

China currently invests about 60 billion USD annually in the US. I guess most of this investment is in the form of mergers and acquisitions. Because US strategic industry market is pretty much closed off to China, investment tends to go to services, such as entertainment and accommodation/leisure.

Europe is a more favored destination for China's investment because better regulations and less hostility. In the end, business is not a charity and Chinese business will chose what is pragmatically more sensible.

Yes that's the idea. I don't have total outbound FDI data for full year 2016 yet, but Dealogic data shows China outbound M&A alone, North America was $68.8 billion last year, mostly in US.

Examples are Dalian Wanda's acquisition of Legendery Entertainment for US$3.5 billion, and Anbang Insurance's $6.5 billion purchase of Strategic Hotel & Resorts, HNA's acqusition of Ingram Micro. US also blocked M&A deals, example is Aixtron (German firm) assets in US. On infra, China-Mexico Fund backed a telecom deal in Mexico, but zero in US.

One can conclude from the pattern: US is very cautious about Chinese SOE, and cautious about Chinese ownership of "critical assets".​

From China's perspective,

Offering infra tech is fine, say hi-speed rail, green energy, electro-mechanicals, electronics, CNC machine tools, large steel components, in fact some are already in current export manifest to US. EPC contracts are fine, China can build bridges, expressways, new airports, seaports. But no funding, all deals are transactional, no vested interests on non-critical assets in hostile state.​

When funding comes into picture, as said before, no more sovereign debts, only FDI. Two key words - SOE, Grids. Huawei (not even a SOE) has been kept outside for a long time, it's time to level the playing field, let Huawei, ZTE, Datang, China Mobile and such goes into ICT infra, smart city projects, quantum coms backbone. Let SGCC goes into national power grids, build UHV transmission. Let sovereign wealth funds like CIC go into utilities infra (town gas, water), and infra related to Fintech, financial services.​

Can both sides come to a compromise on "Rebuild America"? Not easy. Until a deal is made, China just stay focus in funding other high potential markets (OBOR, LatAm).

 

[Shotgunner51]

Now CIC (largest SWF from China) chairman talks about being ready for more investment in US infra, as well as manufacturing. CIC estimates that for US infra alone, investment need is $8 trillion.

China sovereign wealth fund CIC plans more U.S. investments: Chairman
By Julie Zhu and Sijia Jiang | HONG KONG

China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday.

Read more at https://defence.pk/threads/new-pivo...-largest-sovereign-wealth-funds.455072/page-4​

 

[TaiShang]

Now CIC (largest SWF from China) chairman talks about being ready for more investment in US infra, as well as manufacturing. CIC estimates that for US infra alone, investment need is $8 trillion.

China sovereign wealth fund CIC plans more U.S. investments: Chairman
By Julie Zhu and Sijia Jiang | HONG KONG

View attachment 368916

China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday.

Read more at https://defence.pk/threads/new-pivo...-largest-sovereign-wealth-funds.455072/page-4​

US could be the next southeast Asia in infrastructure investment.

Most transportation infra work is lobor intensive, which means lots of job created by China.

Of course, deals need to ensure profit to the Chinese investors. Long term exclusive operating rights given to China until the investment pays off would be a practical way.

China needs to employ an army of IR business lawyers when signing such contracts.

***

CIC eyes healthy prospects in US
China Daily, January 17, 2017

The head of China's sovereign wealth fund said on Monday that it is eyeing rich investment opportunities in the United States as president-elect Donald Trump plans to expand the nation's infrastructure programs.

Ding Xuedong, chairman of China Investment Corp, said the fund is planning to increase its investment in private equity, hedge funds, high-tech and infrastructure construction in the US.

"China and the US should improve economic inclusion to cooperate more with each other, develop new technology, enhance connectivity and increase investment in infrastructure construction," said Ding.

About 40 percent of CIC's total US dollar investment, which is equal to more than $200 billion, is being used to invest in the public market including alternative investments, Ding said Ding at the 10th Asian Financial Forum in Hong Kong.

Ding said that the new US administration will expand the fiscal deficit to increase investment in infrastructure construction, which creates opportunities for CIC's investment in the area.

"I estimate that the US needs at least $8 trillion for its infrastructure construction. The US government and private capital fall far short of the investment needed. They will have to rely on outside investors, which gives us a lot of direct investment opportunities in the country," he said.

"The Chinese economy is expected to grow by at least 6.5 percent this year. The US economy is expected to warm up. As bulk commodity prices show signs of increasing, emerging countries such as Russia and Brazil will exit from recession step by step. All these factors bode well for China's outbound investment," said Ding.

 

[Shotgunner51]

US could be the next southeast Asia in infrastructure investment.

Most transportation infra work is lobor intensive, which means lots of job created by China.

Of course, deals need to ensure profit to the Chinese investors. Long term exclusive operating rights given to China until the investment pays off would be a practical way.

China needs to employ an army of IR business lawyers when signing such contracts.

***

CIC eyes healthy prospects in US
China Daily, January 17, 2017

The head of China's sovereign wealth fund said on Monday that it is eyeing rich investment opportunities in the United States as president-elect Donald Trump plans to expand the nation's infrastructure programs.

Ding Xuedong, chairman of China Investment Corp, said the fund is planning to increase its investment in private equity, hedge funds, high-tech and infrastructure construction in the US.

"China and the US should improve economic inclusion to cooperate more with each other, develop new technology, enhance connectivity and increase investment in infrastructure construction," said Ding.

About 40 percent of CIC's total US dollar investment, which is equal to more than $200 billion, is being used to invest in the public market including alternative investments, Ding said Ding at the 10th Asian Financial Forum in Hong Kong.

Ding said that the new US administration will expand the fiscal deficit to increase investment in infrastructure construction, which creates opportunities for CIC's investment in the area.

"I estimate that the US needs at least $8 trillion for its infrastructure construction. The US government and private capital fall far short of the investment needed. They will have to rely on outside investors, which gives us a lot of direct investment opportunities in the country," he said.

"The Chinese economy is expected to grow by at least 6.5 percent this year. The US economy is expected to warm up. As bulk commodity prices show signs of increasing, emerging countries such as Russia and Brazil will exit from recession step by step. All these factors bode well for China's outbound investment," said Ding.

You are right. As explained in post #21, US is cautious about state-fund's involvement in their critical assets, but China also make it clear that state-funds will lead "Rebuild America", particularly in infra. No more sovereign debts, only FDI from state funds like CIC (or SAFE, HKMA), I suggest US takes this offer.

 

[TaiShang]

You are right. As explained in post #21, US is cautious about state-fund's involvement in their critical assets, but China also make it clear that state-funds will lead "Rebuild America", particularly in infra. No more sovereign debts, only FDI from state funds like CIC (or SAFE, HKMA), I suggest US takes this offer.

I believe that, as China decouples from US sovereign debt, Washington will cozy further up with other debt holders such as the Gulf sheikhdoms and Japan.

The frustration over China's decoupling and re-channeling money into infrastructure and M&A activities in the OBOR and beyond may have led the neo-fascist business hawks in Trump administration to employ North Korean-style warlike rhetoric against China.

I notice that their aggression largely emanates from frustration.

 

[Shotgunner51]

I believe that, as China decouples from US sovereign debt, Washington will cozy further up with other debt holders such as the Gulf sheikhdoms and Japan.

The frustration over China's decoupling and re-channeling money into infrastructure and M&A activities in the OBOR and beyond may have led the neo-fascist business hawks in Trump administration to employ North Korean-style warlike rhetoric against China.

I notice that their aggression largely emanates from frustration.

The tectonic shift in China's geostrategic policy began since 2012-2013, unloading T-bills is one part of the overall policy (which includes Industry 2025, OBOR, LatAm, outbound FDI, strategic reserves, etc). Policies are made based on long-term vision of global geostrategic environment, knowing the ever-worsening global BoP imbalance (trade, credit/debt) is simply not sustainable, unless aliens come to earth and join the debt feeding.

No bank will loan to an already seriously indebted man who keeps on burning new loans like there's no tomorrow.

But you are right, US should count more on Japan, Gulf states and those "unknown" names behind proxy accounts.

 

[ito]

A new cold war between US and China. This offer is going to provoke Trump further.

 

[Shotgunner51]

A new cold war between US and China. This offer is going to provoke Trump further.

The Cold War in last century was largely ideological, if not what it's all about. Nowadays I don't see it happening again, at least from China's side, it's about national interests citing the hard reality that global BoP imbalance is not sustainable. In fact "sustainability" has been a key word in Chinese diplomacy, if anyone pay notice.

In negotiations, whether offers are "provocative" or not are nothing unusual, but emotions are useless or perhaps even counter-productive, pragmatism is the attitude to get things done.

 

[TaiShang]

The Cold War in last century was largely ideological, if not what it's all about. Nowadays I don't see it happening again, at least from China's side, it's about national interests citing the hard reality that global BoP imbalance is worsening. In negotiations, whether offers are "provocative" or not are nothing unusual, emotions are counter-productive, pragmatism always rules.

Besides, even at its highest point of national development, the USSR was less then one-third of the US in economic strength and much behind in innovation. From the start to the end, the US held the economic-development upper hand, thus, was able to dictate the global discourse for the long term.

The US and USSR were complementary, what happened was just that one of the competing ideologies emerged victorious.

China is a different sort of fast growing nation. It does not carry and universalist ideological baggage; China's strength in discourse comes from its high-relevancy in global development. Thus, when it launches an institution like the AIIB, to which the US explicitly objected, even closest US allies enlists into.

USSR was a one-dimensional major country. China is a multidimensional one. Thus, it can easily take US pressure, turn it around, and use it against the US, like what has happened post-Arbitration.

Just to add to the demise, the US diplomatic talent pool seems to be drying up fast. They may not be able to produce statesman anymore.

 

[ito]

The Cold War in last century was largely ideological, if not what it's all about. Nowadays I don't see it happening again, at least from China's side, it's about national interests citing the hard reality that global BoP imbalance is not sustainable. In fact "sustainability" has been a key word in Chinese diplomacy, if anyone pay notice.

In negotiations, whether offers are "provocative" or not are nothing unusual, but emotions are useless or perhaps even counter-productive, pragmatism is the attitude to get things done.

It all depends on how Trump is going to deal with China. China sure will avoid confronting US as the cost of confrontation will be more for China, but there are certain things Trump holds that China calls them non negotiable. If Trump goes back on 'One China' policy, China will have no option but to confront US. So, yes, there is a possibility of Cold war.