While the US spends trillions in an effort to thwart the bear market and to cajole consumers to spend more, China spends its money on infrastructure and buying up assets.
Yesterday in the Financial Times, read that PetroChina paid C$1.9bn. for a stake in Canadian oil sands projects. PetroChina will acquire a 60% stake in two oil sands companies. Previously, China Investment Corporation paid C$1.7 bn. for a 17% interest in Tech Resources, the Vancouver based metals producer that has a minority interest in the Ford Hills oil sands project. China is going heavily into Canadian oil sands.
Yesterday in NY Times the headline, "China Tightens Grip On Rare Minerals. Hong Kong: China is set to tighten its hammerlock on the market for some of the world's most obscure and valuable minerals. China currently accounts for 93% of production of so-called rare-earth elements. . . China has the supply for its own technological and economic needs, and will force more manufacturers to make their wares in China in order to have access to the needed minerals."
It's not difficult to read the Chinese strategy. China has $1.8 trillion in dollar denominated securities that they're worried about. So why not use them? It all fits in with China's aim to sew up as much of the world's assets as possible, always with the "excuse" that they want these assets for their future needs.
China clearly aims to be the next world's super-power, leading the world in wealth, gold, technology, manufacturing, exports and possibly in military strength. Meanwhile, America, run by a bunch of shortsighted teenagers, sleeps.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment