Tuesday 22 October 2013

China Continues To Make Investments to Improve Emerging Markets

It seems like there isn't a week that goes by without China making some positive news on the world stage, particularly with regards to investing and global trade. Whether it has to do with their growing domestic economy, their growing export and import numbers or even their huge investments into port infrastructures in many countries around the world, China seems to be making a positive impact wherever they go. Over the last few years the Chinese government and business leaders have been establishing meaningful international relationships, foremost by investing their cash reserves to help other countries in a variety of industries including commerce, scientific development, technology, education, security, energy and environmental conservation. In doing so, China has emerged as a global superpower and become very influential, as well.

China's motives for distributing their massive cash reserves all around the world are constantly being questioned. Particularly those which seem to focus on the emerging countries and regions, that are in desperate need of investment to encourage and accommodate growth in their struggling economies. Nations such as India, Russia, Brazil (and other regions in South America) and Africa, are just a few of the prospering areas that China has invested in. For example, Chinese President Xi Jinping signed an agreement with Costa Rica to lend them over US$500 million, to help them with their economic development projects. Moreover, the Chinese President has said that China intends continue working together with countries not just to improve their own fortunes, but the rest of the world as well.

"We will strengthen our coordination and efforts in relevant international issues. We're going to defend together, the general interests of developing countries and we're going to make greater contributions to peace and stability in the world."- Chinese President Xi Jinping

Chinese investors have recognized the strong growth potential in the world's emerging markets and are capitalizing on opportunities that are of benefit to both parties. Despite questioning their motives, the international investment community can see that China is just simply taking advantage of the fact that they have surplus cash to pursue the profitable business and investment opportunities that are available in the global marketplace today. An increasing number of analysts agree that China has become one of (if not) the world’s most successful capitalist nation. And, in doing so, it would seem that the future of the global economy is (in many aspects); going to be dictated by China's successes.

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