Love and fear of Chinese investment
Updated: 2011-09-10 11:38
Photo taken on Sept. 6, 2011, shows flower beds at the Xiamen International Conference and Exhibiton Center in Xiamen City, southeast China's Fujian Province.[Photo/Xinhua]
MOC data showed China has invested in 178 countries and regions. By the end of last year, Chinese overseas investment had generated $11.7 billion in tax revenue and created 780,000 jobs for local residents.
Along with China's deepening interaction with the world economy, however, some have cast doubts on China's overseas investment, especially within natural resources, energy and high-tech sectors. China's economic efforts have been categorized in some cases as "neo-colonialism," "resource exploitation," or as a threat to the national security of other countries.
Several years ago, China National Offshore Oil Corp (CNOOC) suffered a setback in its attempt to purchase Unocal, and later the Aluminum Corporation of China was frustrated by its failure to buy the Rio Tinto Group. In early 2011, China's Huawei Technologies Co withdrew its agreement to buy the assets of 3Leaf Systems of the US under pressure of the US Committee on Foreign Investment.
"In the 'going global' process undertaken by Chinese enterprises, we've got support from most countries, however, some countries and regions intended to exclude us on the excuse of national security," said Minister of Commerce Chen Deming.
"I think that isn't favorable to our common handling of the financial crises, nor favorable to (the world's economic) recovery as early as possible," Chen said.
He added that nations around the world should create an open and more comfortable environment for overseas investment to boost confidence amid the current global economic uncertainty.
Commenting on such a love-and-fear attitude toward Chinese capital, Johnson said some people just follow their feelings rather than observe the facts. The United States welcomes all businesses that are able to bring about employment and have good prospects.
It's quite unnecessary to worry about investment coming from China, said Andrea Goldstein, head of Global Relations at the Investment Division of the Organization for Economic Cooperation and Development (OECD), citing the precedents of huge sums of investment in Europe from the United States in the 1960s and the global capital flow from Japan in the 1980s.
In this regard, the crucial issue is open dialogue and communication about relevant topics, Goldstein said. In the current global economic situation, China's overseas investment is of great significance to a balanced global development.