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China Jackie - Email

China Jackie - Email - From receiving foreign investment to...

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Chinese Investment Abroad: -Increased rapidly because China has money to invest, including large amount of foreign reserves. -It faces problems because US is unwilling to transfer technology to China. Large computers prohibited. IBM PC finally sold to Lenovo. -August 2005 Chinese oil company Cnooc Ltd. withdrew its $18.5 billion takeover bid for California energy firm Unocal Corp., saying it could not overcome resistance from politicians in Washington who said such a deal could threaten U.S. national security and violate the rules of fair trade. -China investing in developing countries esp. in Africa and Latin America, spreading its economic influence. China likely to increase its investment abroad as a part of its “peaceful rise” and a consequence of large foreign reserve.
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Unformatted text preview: From receiving foreign investment to investing abroad (this is the title of the article):-China’s net overseas investments in 2006 and 2007 were respectively 17.634 and 26.506 billion US dollars. -Total accumulated net overseas investment at the end of 2007 was only 117.910. Thus the amount invested in 2007 alone accounts for 22.5 percent of this total. -China’s foreign direct investments in 2006 and 2007 were respectively 63.021 and 74.768 billion US dollars. Hence its rate of increase is 18.6 percent, much smaller than the 50.3 percent for investment overseas. -By 2007 the ratio of overseas investment to direct foreign investment is already 35.5 percent. From the trend described above, this ratio can be expected to increase continuously in the foreseeable future....
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