China Xi’s Long-term Investment for his People in China’s NeighborsPosted: October 15, 2016
China has a huge foreign exchange reserve. It has to make good investment for satisfactory returns, but there does not seem to be many good opportunities. Investment in US government bonds is not a good choice with low interest rate and risk of devaluation of US dollar.
For monetary returns, there are no satisfactory opportunities in other countries too. SCMP says in its report today titled “Xi overseas package of deals with Bangladesh, giving push to ‘One Belt’ vision” that China has signed contracts and memorandum of understanding for projects involving US$23 billion loans.
In another report on Chinese leader Xi Jinping’s visit to Cambodia titled “It pays to be friends with Beijing, but why is big China wooing small Cambodia?”, SCMP says, “Last year, China invested more money in Cambodia, a country with 16 million people and a per capita gross domestic product of US$1,200, than all other countries combined. In all, China accounts for 20 per cent of capital spending in Cambodia.”
SCMP believes that the investment has been made for political purpose to counterbalance the US and make Cambodia support China’s stance on the South China Sea. However, there is no need to make such huge investments. There are no such political needs in investing in Bangladesh. However, Chinese leader has wise vision to know the long-term win-win outcome of the investments.
China has a huge population so that many Chinese have to find opportunities abroad. History has proved that Chinese people are good at helping other nations develop their economy and merging with the communities there. They have become rich there, so rich that they even dominate the economy there, but they are well accepted by local people. Investment in infrastructures in those poor underdeveloped countries will facilitate Chinese people seeking prosperity there.
There are now 2 billion ethnic Chinese in the world. Many of them live abroad and are quite successful there. China’s huge investments abroad now will enable more ethnic Chinese to prosper abroad. They will be China’s great strength in the world in the future as Chinese people love their country. China’s great culture makes ethnic Chinese even their children and grandchildren born abroad love and are proud of their motherland.
Chinese revolutionaries relied on overseas Chinese donations in conducting their 1911 revolution.
Overseas Chinese donations were major source of income for Chinese government in its 8-year war of resistance against Japanese invasion.
At that time, China is very poor and weak. It was not able to do anything to help Chinese people abroad. Now, China is rich and has lots of foreign exchange reserve. It certainly has to make huge investments in infrastructures abroad for Chinese people to prosper there.
In that way, China will take the entire world through win-win cooperation with other countries.
That is Xi Jinping’s vision!
Comment by Chan Kai Yee on SCMP’s reports, full text of which can be viewed respectively at http://www.scmp.com/news/china/diplomacy-defence/article/2027840/why-big-china-wooing-small-cambodia and http://www.scmp.com/news/china/diplomacy-defence/article/2028131/xis-milestone-visit-bangladesh-boosts-chinas-influence