A piece of the economic pie
- By Earl Bousquet
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E-mail China.org.cn, May 13, 2017
Everyone wants a piece of China today.
The British, Canadians and Americans – like many others – are indeed going head over heels to attract more Chinese investment, students and visitors.
With China producing an ever-increasing amount of millionaires, businesses and wealthy citizens are increasingly being wooed to leave China and take up residence abroad.
On May 7, top U.S. and U.K. newspapers reported that a U.S. businesswoman with ties to the White House was in Beijing unfairly wooing Chinese investors to invest in a private luxury development, with the prospect of receiving U.S. green cards in return.
The issue was also used to raise conflict of interest issues with the Trump administration. But offering permanent residency and passports in return for investment is standard practice in most Western capitals.
Despite fears about abuse of such schemes by unsavory characters, many countries worldwide – including the U.S. – actually officially offer citizenship for investors. It's the same in smaller nations, too, including the Caribbean countries, where some Citizenship by Investment Programs (CIP) invite potential investors to "Come as a Visitor and Leave as a Citizen."
But China does not have to offer or sell passports for investment, as facilities already exist for persons needing to remain there for usually long periods.
American and European investors already flock to China, as a result of growing business opportunities and guarantees of attractive rates-of-return: Airbus delivered 153 aircraft to China in 2016, Walmart recently opened-up 40 new outlets in China, Changan Ford opened a fifth China factory last year and Shanghai Disney recorded welcoming nearly 6 million visitors in just seven months in 2016 – and last year McDonald's sold its China business for over $2 billion.
U.S. companies also reap great profits from the Chinese market. In 2015, China purchased $165 billion in goods and services from the USA alone, representing 7.3 percent of all U.S. exports; and by 2030, estimates are that U.S. exports to China will rise to over $520 billion.
With the World Bank predicting the Chinese economy to grow by 6.5 percent in 2017 and the population to reach an estimated 1.45 billion by 2030, American and European companies are also keeping their eyes on China.
Chinese companies have also invested billions in the U.S., creating much-needed jobs. According to a January 2017 report by the U.S.-China Business Council, trade with China supports some 2.6 million jobs in the U.S.
Chinese firms have also been landing lucrative transport, construction, engineering and energy contracts in the U.S., with some well poised to land investment possibilities in joint public-private ventures to come out of Donald Trump's recent unveiling of a massive trillion-dollar infrastructure plan.
Likewise in the U.K and Europe, sizeable Chinese investments in real estate, joint and/or public-private partnerships are also growing by leaps and bounds.
Indeed, records show that China has contributed more towards global growth over the past 15 years than the Eurozone and the U.S. combined – while also accounting for one-third of global GDP growth in 2015.
Naturally an investment powerhouse, China has learned from the experiences of others and therefore continues to be accused of being too careful, and even too restrictive about the places in and levels at which foreign direct investment can be applied domestically.
Major Western nations continue to accuse China of everything from cyber trade espionage to copyright infringement and currency manipulation. But their major corporations continue to seek and find ways and means of doing more business with China.
The fact is: Foreign companies hardly have to be enticed to do business with China today. Nor do Chinese companies have to be surreptitiously enticed to pack-up and leave for other shores.
Chinese firms already have their own big plans for overseas investment. Moreover, China has for long been opening-up to foreign investment.
The upcoming Belt & Road Forum for International Cooperation in China on May 14-15 will provide another opportunity for states, corporations and other entities that haven't made up their minds to take advantage of the many opportunities offered by China's economic growth.
Naturally, some Chinese businesses, nearer to the starting point of the new route, have readily taken the initiative to realize the ancient proverb of "The early bird catches the worm."
But others along the way – and from near and far – can also board the early train for the free ride on the new road for equal investment challenges and fruitful rate-of-return opportunities.
Earl Bousquet is a contributor to china.org.cn, editor-at-large of The Diplomatic Courier and author of an online regional newspaper column entitled Chronicles of a Chronic Caribbean Chronicler.
For more information please visit: http://www.china.org.cn/opinion/earlbousquet.htm
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
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