December 15, 2008
New Chinese investment strategies:
- investment of currency reserves into a broad range of currencies
- no participation in speculations
- partial retreat from the US-American export market
- stimulation of the Chinese domestic market
December 01, 2008
Energy problems increasingly affect the global economy:
- China concentrates its forces on the exploration and development of new energy sources (e.g., oil)
- energy policy requires future-oriented relationships with the 6 main "oil countries": Saudi Arabia, Iran, Iraq, United Arab Emirates, Venezuela, Russia
November 17, 2008
Policy of opening up to the outside world since the beginning of economic reforms under Deng in 1978:
- integration of China into the global economy
- approx. 60% of the GDP through foreign trade
- "plan and market" parallel to one another
- new contract, customs, and monetary policies
November 10, 2008
Chinese enterprises also raise money at international stock exchanges:
- focus: Hong Kong stock exchange
- increasing importance of Frankfurt on the Main
- decreasing importance of New York
November 03, 2008
Results of the "policy of opening up to the outside world" and of Chinese economic reforms:
- measurable Chinese politics of innovation
- double-digit growth rate per annum
- export surplus and active trade balance with all trade partners throughout the world
- foreign currency reserves of approx. USD 3 trillion
October 27, 2008
Largest Chinese petrol group: "China National Petrol Corp."
- CNPC does business internationally
- development of foreign oil fields - particularly in newly industrialised countries (Asia/Africa/South America)
- moreover: development of underdeveloped infrastructures
October 21, 2008
As is generally known, the current global financial crisis - which was largely triggered by US banks - didn´t have a considerable impact on China.
Generally speaking, it can be said that China currently acts in a very subtle and discreet way and indirectly forces the US to react:
- It is estimated that, today, China already owns US Treasuries worth approx. USD 520 billion.
- This is approx. one quarter of China´s foreign currency reserves.
- These facts have always caused China to carefully observe - and to exert influence on - the US financial
markets.
According to the Central Bank of China, the country also carries a heavy burden as it helps to restructure the US financial markets.
- In this context, China´s demand to secure Chinese investments is pivotal.
- This means that liabilities of unstable US financial service providers are transferred to the responsibility of the
US government.
- The case of "Fannie Mae and Freddie Mac" shows how serious these demands were and still are:
Here, Chinese government funds worth approx. USD 370 billion are involved.
- This is the actual reason why the US Administration vouched (and still vouches) for both companies and
made the entire issue an affair of state.
On the part of the Central Bank of China, there were (and still are) considerable concerns over "putting all eggs in one basket" with regard to the two already mentioned US mortgage banks and China´s engagement in the US financial market in general:
- Investments of Chinese foreign currency reserves into a wider spectrum of currencies.
- No Chinese participation in speculative US financial products.
- Gradual turning away from the US export market - especially with regard to consumer products.
- Stronger focus on the domestic market.
October 06, 2008
New cooperation between France and China:
- nuclear energy: 2 new Chinese nuclear power plants with French power plant technology (EUR 8 billion
supply contract with the company AREVA)
- aircraft construction: delivery of 110 Airbus A320 and 50 Airbus 330 aircrafts
- total value of contracts: EUR 18 billion
September 22, 2008
Prime Minister Lee / Singapore:
- situation in Asia not to be compared with 1997 financial crisis
- situation is different as China controls capital,
- market is determined by own capital, and
- Chinese economy constitutes a stabilizing factor in the entire ASEA region
September 15, 2008
- Within the past 7 years, the Chinese GDP has more then doubled.
- focus: products of the manufacturing industry and its export trade
- example: foreign trade surplus compared to the US: almost USD 300 billion
- China's foreign currency reserves: almost USD 2,000 billion
- China is the biggest creditor of the US.
September 11, 2008
In the context of the economic reform:
30-year cooperation triangle:
a. raw materials / components from Japan / South Korea / Taiwan
b. processing of a. in China
c. marketing and acquisition of b. in Western Europe / the US
September 08, 2008
In July 2008, the G8+5 Summit in Japan declared a joint responsibility for reducing CO2 emissions.
News: In this context, China, India, Brazil, Mexico and South Africa (the G5) have a joint vote for the first time! This means that the G5 will accept the quantitative reduction targets as soon as the G8 have contributed their part.
September 01, 2008
Chinese annual budget 2007
- Foreign currency reserves 1,530 Bn USD
- Export of Chinese processing industy 28 % increase
- China generates approx. 15 % of the world economic performance
August 28, 2008
New legislature for foreign investment in the 90's:
- Since than 1,000 billion USD have been invested
- Settlement of approx. 500 major enterprises in China
- New wave of Private Equity Capital