Opinion / Opinion Line

Investments sign of deepening integration

(China Daily) Updated: 2016-06-02 07:51

US secretary of State John Kerry and his wife Teresa Heinz have reportedly invested in 12 Chinese companies, including the 5100 Water Resources Co Ltd in Tibet. Beijing News commented on Wednesday:

The investments should not be over-interpreted, as Kerry is not a direct beneficiary of the investments, which were made by trusts of his wife's family, and his wife exercises no control over the investment decisions made by the independent trustees, according to a US State Department spokesperson.

In fact, similar trade and investment exchanges between China and the United States will become more frequent, as they now serve as an essential link in the bilateral ties, thanks to the rise of China in recent years. China replaced Canada as the US' largest trade partner last year, despite their increasing geopolitical frictions in the South China Sea.

Unlike basic commodities, direct investments indicate a deeper integration of the two markets that can lift the Beijing-Washington bond to new heights. In Kerry's case, the investments in Tibet's water conservancy should be welcomed as long as they are in line with the relevant laws of both countries.

Therefore, the US Secretary of State should be left alone.

On the other hand, the free flow of capital is gradually changing how countries interact with each other. In other words, with an increasing number of Chinese investments on their way to overseas markets, the economic cooperation between Beijing and Washington will continue regardless of their clashes in the international geopolitical arena.

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