China’s Use of Huge US$ Reserve for High Tech Takeover Troubles USPosted: December 3, 2016
Reuters says in its two reports “Obama bars China’s Fujian from buying Aixtron’s U.S. business” and “Aixtron will have to cut costs, jobs if U.S. blocks China deal” that the US blocks China’s takeover of Aixtron’s U.S. business due to fear that China may obtain technologies for military application such as the technology for production of gallium nitride, a powdery yellow compound used in light-emitting diodes (LED), radar, antennas and lasers, and nanotube technology.
In the past, the US only feared that China might steal its technology, but now China is so rich that it simply buys the whole high-tech firms from the US to obtain technologies, especially those for military application.
On December 1, I had a post titled “China’s Foreign Exchange ‘Worry’” to comment on SCMP’s ridiculous title of its report on China’s change in its attitude about its huge foreign exchange reserve “A US$3 trillion burden or a blessing”.
Only those who are obsessed with drawing a negative picture of China would describe a country’s US$3 trillion foreign exchange reserve as a burden.
The huge foreign exchange first of all enables China to buy high technologies from the West. It is China’s blessing but US trouble and fear as the reserve enables China to buy lots of technologies from the West if the West does not block such purchases.
Comment by Chan Kai Yee on SCMP’s report based on Reuters’ reports. Full text of SCMP’s report can be found at http://www.scmp.com/news/china/economy/article/2050381/us3-trillion-burden-or-blessing-beijing-changes-its-attitude.
China certainly has lots of problems for Western media to give negative descriptions and China has to conduct serious reforms to overcome such problems. However some descriptions are simply ridiculous. I point them out in my blog for the mere purpose of entertaining my readers. It does not mean that I hate such descriptions like some commentators of my blog. On the contrary I like them, especially as they provide something to entertain my readers.
On the other hand, such negative descriptions please bosses of Western media and some readers of Western media who hold a negative view on China due to their reading of lots of negative descriptions in the media, true or ridiculously false. That is really a win-win situation: writer being well paid for writing ridiculous descriptions that please media bosses while my readers may be entertained free of charge due to such descriptions.
Full text of Reuters’ two reports can be viewed respectively at http://www.reuters.com/article/us-aixtron-m-a-fujian-idUSKBN13R0DU