China doesn’t want to touch the risky and unpredictable European stock or bond markets.Instead the Chinese want to buy infrastructure outright. Minister of commerce Chen Deming described this strategy at a conference yesterday (via EU Observer’s Andrew Reitman):
“Next year, we will send a delegation for promoting trade and investment to the European countries … Some European countries are facing a debt crisis and hope to convert their assets to cash and would like foreign capital to acquire their enterprises. We will be closely watching and pushing forward the process.”
Chinese factories and trains have proved profitable in China and around the world. The challenge is getting approval to buy infrastructure from suspicious Europeans.
Chinese developer Huang Nubo was blocked earlier this week from a bid to purchase 0.3% of Iceland where he would build a tourist park.
Nubo complained of prejudice (via Reuters): “”The difficulties that Chinese enterprises encounter are numerous, like the view that state-owned enterprises represent your country, that whatever your background is you’re a military business and touch on national security… You can come and buy a house, and you can emigrate here and bring your riches with you, or you can buy my luxury goods, but if you want to touch my natural resources, then I’m sorry, I won’t let you.”
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