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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