Wednesday, 13 February 2013

Chinese Foreign Investment Strategy Invests in The Future

You have got to give China some credit. As full-fledged members of the capitalist economic world, they have sure come a long way in a very short time. Since joining the World Trade Association (WTO) in 2001, they have ascended to the top of the heap, in a little over a decade. It seems as if the emerging nation is not intending to stop there. They have been going on a world buying spree, literally. And, in a cash-starved, credit-based economic world, their extensive cash reserves gave them an instant advantage over the rest of the global members; and Chinese investors have been taking full advantage of it.

Certainly, the western financial fiasco over the last five years, put their world competitors at a severe disadvantage, much to the benefit of China. This circumstance has propelled China into the role of a dominating economic force. Perhaps the rest of the investment community, can learn some lessons from the Chinese, when it comes to investing IN the future; as opposed to investing FOR the future. With regards to the latter, many of the investors in the western world, have realized that the future they invested IN; didn't turn out quite like they expected. China’s global foreign investment approach on the other hand, seems to have a well-thought-out plan behind it and appears as though things are turning out the way that China had intended, when they began making their huge shipping industry investments; all over the world.

China has been making sizable investments, totaling well into the hundreds of billions of dollars, into local foreign infrastructures, particularly in the transport sectors, such as ports, roads and rail. As well, they have been making huge investments in raw materials, as these are essential to a growing global economy, and will be in strong demand for many years to come. These investments by China are seen to be very wise indeed. Supply and demand. Their penchant for supporting and investing in emerging markets also illustrates some intelligent investment strategies, that will serve to position them in a position of economic strength and influence, when these new consumer markets begin to prosper; and demonstrate their full potential.

China recently has been buying stakes in foreign ports all around the world and investing in upgrades and modernizing them, to put them in a competitive position for the future global economy, that is expected to boom in the next five years. As emerging markets strengthen and begin to make viable contributions to the overall value of the world’s economy, China will be at the forefront leading the way, not only from their domestic position as the eventual largest consumer market in the world and biggest exporter; but they will also be in positions of economic strength and influence in many strategic locations around the globe. With regards to the newly evolving international supply chain route, that has already started to be rewritten, this is especially important to the success of many of the investments made by Chinese investors. The international investment community has got to give China credit, for having a vision and utilizing their vast resources, to realize their economic and investment goals.

1 comment:

  1. Chinese investors have had a monumental impact on the global shipping industry. From financing shipping port improvements to building enormous shipping container vessels, the investors in China have made huge financial contributions to economic growth; all over the world.