investment banking : Possibility China will buy the U.S.?

investment banking  : Possibility China will buy the U.S.?


Foreign investment in China increased rapidly and soon became one of the largest creditors of the United States. Some analysts believe the dollar and government bonds issued to expand the size of China, will become a major buyer of U.S. assets hard. However, China is a different perspective. China to expand foreign direct investment. With China's increasing foreign exchange reserves of China in less than 10 hours in the rapid expansion of FDI. It is expected over the next five years, foreign investment in China more than foreign direct investment in China. British "Financial. Times" recently published an article, because the dollar is declining, while the U.S. government to significantly increase the amount of bonds through the financing gap to compensate for inflation, U.S. foreign oil. We try to buy the much more difficult. The activities and investments in financial assets. According to the article, while sitting on $ 3.2 trillion. Foreign exchange reserves, China is destined to become a major buyer of U.S. assets hard. According to the U. S. Press, Washington, Carnegie Endowment for International Peace Foundation Senior Huang Yuchuan that China has increased its investments in foreign countries including the United States is a natural phenomenon. He said: "Which country has the resources to invest in some of them abroad, especially considering how much is invested in the country. This is globalization. In fact, it is very strange." China will not become major buyers. Heritage Foundation think tank in Washington, in search of the history of Kendo Centre for Asia that China will certainly increase the bond other than purchases of U.S. assets. But few have been made recently, however, said that the process is not uniform, the amount is not large. He also believes that because China has a lot of money, so that it automatically adds the portfolio of business logic does not hold up the U.S. difficult. He said in an interview with reporters. "First of all, the current level, China $ 5.6 billion in additional foreign exchange reserves, most of them will need to purchase U.S. Treasury can not get elsewhere. Therefore, China can not get the money to purchase other goods that the United States to reduce its trade surplus, or open their capital before they have to buy U.S. bonds. " Experts say that the Chinese economy, Chinese purchases of U.S. bonds, in addition to and not have much choice other than one of the reasons why no other market could absorb a lot of money. He also believes that in the case of the continuous depreciation of U.S. dollar to buy a house and other assets that will not make China even more varied. He said: "The purchase of bonds for the purchase of the assets in the United States and if there is a big difference, or because they are denominated in U.S. dollars. When you sell these assets, you will receive a medal. If you devaluation of the dollar, your investment is a release? They do not need. " China to buy U.S. assets will face obstacles. History of Kendo has also stressed that China's purchases of U.S. assets is clearly still has many obstacles. He said that the United States, there are many things that China can buy there. But I'm not interested. But what they do, such as high-tech products in the United States do not allow them to buy. Carnegie Endowment for International Peace Foundation, a senior researcher Yuchuan Huang said that the sensitivity of investment in China is often not seen as a public or private sector investment. But the fact that the countries concerned. And 'the fear that foreign investment can lead to political or security problems

investment banking  : Possibility China will buy the U.S.?