Saturday, May 8, 2010

China Wants More, U.S. Plans to Give

Foreign direct investment is partly responsible for China's economic boom. Consider several facts cited by the WSJ:

China has gotten used to high levels of overseas money: $90.03 billion of foreign direct investment (FDI) last year.

Over the past decade, China has locked in a steep $635 billion in FDI.
Last year, 70% of the nation's machinery and electrical exports, almost $500 billion worth, were produced at foreign-funded factories.

Other facts:

Virtually all Vitamin C is made in China.

Experts predict that 80% of medical drugs and drug ingredients will come from factories in China or India in the near future.

Tainted heparin killed more than 80 patients and over 700 severe allergic reactions. A Chinese supplier provided the toxic ingredients. The FDA's reaction revealed huge holes in America's drug safety system, which clearly remain.

While President Obama's Deficit Commission looks to lower corporate taxes for global competitiveness, China's asking businesses to commit more capital. i.e. payola.

America's federal and state governments give millions in economic development funds to private companies. Many are affiliates of equity underwriters (PEU's) who failed to fulfill job promises.

China expects the same PEU's to pony up millions in yuan for the right to do business in their communist country.

What will China do with their proceeds? Become the biggest PEU player says Carlyle Group co-founder David Rubenstein.

The U.S. gives, while China takes. Having lost over 2 million manufacturing jobs to the Red Storm, it's a familiar refrain. Globalist brands milk their country of origin, while kow towing to China.

PEU's chair President Obama's Deficit Commission and a Virginia government restructuring commission. They get to remake the board in their favor, at least until the whole table is flipped. Who will throw the money changers out of our hallowed halls of government? It's not Red or Blue Corporacrats.