How China is taking advantage of Coronavirus (COVID-19) Pandemic

-




Corona virus has spread around the globe infecting millions of people, and shutting down non-essential businesses. This has led huge number of companies close to bankruptcy. And now China is trying to buy such companies outside of China, specially in India, US, and Europe at a very low price.
A few weeks ago, China reform holdings tried to take control over British graphic chip maker called Imagination technologies. This deal would have gone through except the UK Govt stepped in at last Minuit to block it of national security concern. But anyways China reform owns 1/3rd of Canyon Bridge funding’s who then has shares in Imagination technologies. 
The larger problem here is that many companies in India, US, and Europe are vulnerable for hostile Chinese investment. In 2019 Chinese invested nearly 13 billion dollars in European countries. While in 2018 they invested about 25billion dollar in US mostly in Tech companies. 




 In the long-term China wants to obtain control over the most profitable segments of global supply chains and production network. It aims to systematically acquire cutting-edge technology and generate large-scale technology transfer.
Corona pandemic is a great opportunity for China to buy companies around the world at very low price. Also, we have seen that China is now worlds largest producer of ventilators, respirators and test kits. China has already started using corona for its own economic interests.
Same thing happened during 2008-09 crises when Chinese firms ventured out to acquire discounted assets around the globe, especially those with strategic utility.
 But this time many Govt are aware of such Chinese practices. In US the Govt has woken up to the national security implications of losing sensitive capabilities to China. Similarly,India has updated FDI policies. 



But not all Govts are aware of this as India, US and UK are. Many are falling for this trap such as Italy, Greece and Portugal. And despite US security warnings many European countries are allowing Huawei to develop 5G in their countries. The measure   concern here is that there is no such thing as completely private Chinese company, Chinese communist party controls all the businesses from China. Hence allowing any Chinese company to invest in your country, means allowing Chinese communist party to take control over business in your country. That’s why many countries are keeping eye on Chinese investment during this crises and are figuring out a way to support their own collapsing firms. 



   
      

Comments

Post a Comment

Popular posts from this blog

Why did Chinese communist party cover up Coronavirus (COVID-19) pandemic?

-
Image
Chinese communist party covered up the corona virus, but they had no choice, because that’s how their system is supposed to work. And now thousands of people are dying around the world. If Chinese communist party had handled this situation properly in first two months then Lots of lives would have been saved today.   Chinese communist party never cared about anything else then stability of their party, they wound risk thousands of lives to keep their powers. Problem lies in one party system where they try to control every expect of their citizens lives, from what they can see on social media, to how many children they can have. In this type of system, the party takes all the credits when things go well, but when things go wrong they try to cover it up in order to keep stability and prove to the world that Chinese communist party is very strong and reliable. Chinese communist party consider any threat to stability as a threat to their rule, hence their stab
Read more

Debt trap and belt road initiative.

-
Image
Debt trap and belt road initiative. In last decade China has got a strong grip on Indian ocean by investing billions of dollars to build Port facilities and maritime trade routes as part of belt and road initiative. To basically help china boost their economy and also make export easier for themselves. Many poor countries fell in this trap by china and now we see them suffer for example Pakistan cannot put lockdown during corona pandemic.  Here are 5 countries who got trapped in Chinese  debt. Sri Lanka In 2010 Sri Lanka got loan of about 8 billion dollars from china to build port of hambantota and other developments. Looks like a great help from China but this port has no traffic and without any traffic it is impossible for Sri Lanka to pay back this huge amount so they were forced to give up the port to china for 99 years lease. And now china has decided to use this port for Chinese military purposes from where china can easily attack India from sout
Read more

6 wired food Chinese eat

-
Image
BBC news in February   2019 article ( BBC news ) had observed the wealth and population link to meat consumption across the world. Where they mentioned that in high income countries with increasing population meat production is also increased, while many of the world's poorest countries eat very little meat. This has been the case for 50 years or more. Rapidly growing nations like China and Brazil have seen significant economic growth in recent decades, and a large rise in meat consumption. This is observed in rapidly growing nations like China and Brazil where    we see large rise in meat consumption in recent decades. (the average person in 1960s China consumed less than 5kg a year. By the late 1980s this had risen to 20kg, and in the last few decades this has more than tripled to over 60kg. as per BBC news ) similarly   Brazil also had doubled it’s meat consumption since 1990.   BBC news also said that “India is one notable exception” where average inco
Read more