They have no export industry without the U.S. consumer.
Many are taking/making the money and moving to the U.S./West and thus doing the consuming.
A Chinese Group Plans To Construct A 200 Acre “China City” In Michigan
A Chinese group known as “Sino-Michigan Properties LLC” has bought up 200 acres of land near the town of Milan, Michigan. Their plan is to construct a “China City” with artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens. Essentially, it would be a little slice of communist China dropped right into the heartland of America.
Take the Money and Run: China's Ill-Gotten Wealth Flees Overseas
November 27, 2013
Source: Charles Hugh Smith
The front door is covered with official pronouncements of "the China Dream" and blustery demands of hegemony, but the back door is choked with members of the financial/political Elite fleeing China and taking their wealth with them.
The first thing to understand about China is there is always a front door and a back door to everything. The front door is what's presented to the outside world; the back door is for everything that doesn't fit the PR image created by the front door.
The front door presents positive "face," the back door is for everything that would "lose face," so it's hidden and never discussed, except in private, and only with trusted family or friends.
A friend who once worked for the Chinese government recently returned home after several years absence, and found that all her bosses had moved to the West:Australia, Canada, etc. These were typical officials: their base salary was low but they managed to buy multiple homes, support mistresses, have upscale autos, and so on.
In a word, ill-gotten wealth.There are tens of thousands of these beneficiaries of China's boom in credit and corruption, and they have all either fled (with their ill-gotten wealth) to the West or "safe-haven" East (Singapore, for example).
Those who haven't fled yet have passports to a safe haven, and cash and homes overseas awaiting their arrival.
It is common knowledge that the offspring of top officials all have passports and homes awaiting them in the West.
That every one of your political bosses has left China is an astounding revelation into the mindset of those who have benefited most from China's boom: they obviously fear that some upheaval could strip away their ill-gotten wealth, otherwise, why not simply move to some wealthy enclave in China?
The front door is covered with official pronouncements of the China Dream and blustery demands of hegemony, but the back door is choked with members of the financial/political Elite fleeing China and taking their wealth with them. All of this is well-known, yet it is spoken of in hushed tones, lest China lose face from this wholesale exodus of those who strip-mined the nation with credit and corruption.
If the Elites had any faith in China's future, and in the security of their wealth, why would they be fleeing China in perhaps the greatest peacetime exodus of wealth the world has ever seen? Estimates of the money flowing out of China are merely guesses, of course, but the numbers run into the tens or even hundreds of billions of dollars.
Those in the political/financial Elites have the best information about conditions in China. What speaks louder, actions, or empty words? Actions, without a doubt. It's difficult to see how China can be as stable as advertised when its monied Elites all have back doors out of the country and homes awaiting them in the West. The most fearful (or guilty) aren't waiting around to risk the future in China; they're already long gone. What does that say about the front door pronouncements of hegemony and dreams? The inconvenient truth is the Chinese Dream is to live in Palo Alto:
Why Chinese People Buy So Many Homes in Palo Alto (The Atlantic)
Chinese Dream: To Become the Father of an American, by Jia Jia "When Bill Clinton visited China in 1998, a female student named Ma Nan at Peking University stood up and denounced the appalling human rights condition in the US. She was supposed to file a question, but she sounded more like she was delivering a lecture. Later on, she married an American man, gave birth to a son, became the mother of an American, and departed China for good."
China’s outward investment
The second wave
What to make of Chinese firms’ latest foreign purchases
Oct 26th 2013 | SHANGHAI
HAS China arrived at its Rockefeller Centre moment? In the late 1980s as Japan’s miracle economy was soaring, the Mitsubishi Estate Company bought the Rockefeller Centre in Manhattan, a landmark complex built by the eponymous oil and banking clan. Alas, Mitsubishi had to sell, at a big loss, after Japan’s asset bubble popped. Now it is Chinese firms that are seeking such trophies in New York.
Fosun International, a Chinese conglomerate, has just agreed to pay $725m for 1 Chase Manhattan Plaza, a skyscraper near Wall Street, commissioned by David Rockefeller and completed in 1961. This follows a recent investment by Greenland, a Chinese state-owned firm, in Atlantic Yards, a big development in Brooklyn. Earlier this year a consortium involving Zhang Xin, a founder of Soho China, a private property giant, bought a stake in the General Motors Building in Manhattan.
It does not necessarily follow that this assault on New York will also end in tears. Whereas Mitsubishi overpaid, the Chinese investors seem to be negotiating reasonable deals. Michael Cohen of Colliers International, a property-services firm, says that although Fosun must modernise the ageing Chase tower, “The price per square foot appears to be a bargain.”
A shift is under way in China’s overseas direct investment (ODI), which is growing fast but is still dwarfed by foreign investment into China (see chart). The first wave largely involved state-owned firms, and was directed at acquiring energy, minerals and land in poor countries. Resource insecurity lingers—witness the 20% stake taken this week by Chinese state firms in Libra, a giant Brazilian offshore oilfield—but it is no longer the driving force. New motives propel the second wave.
China’s government is keen to boost the miserable yields it gets on its overseas investments, argues Thilo Hanemann of Rhodium Group, a consultant. So it is now encouraging state firms to invest in property in prime locations, and in infrastructure and other assets in mature markets. In Britain, they have invested in Thames Water and Heathrow airport. This week the British government said a consortium involving Chinese state firms could build a nuclear-power station in the west of England.
Private firms seeking brands and technology are also playing a big role in this second wave. Geely, a Chinese carmaker, bought Volvo of Sweden. Dongfeng, another Chinese firm, is said to be considering buying a stake in Peugeot-Citroën, an ailing French carmaker. On October 22nd Alibaba, a Chinese e-commerce giant, said it would open a new division in America to invest exclusively in internet start-ups. And Lenovo, a computer-maker, is preparing a bid for Canada’s BlackBerry.
As a result, the share of Chinese ODI going to rich countries has shot up from just a tenth in 2002 to two-thirds last year. Like Japan before it, China could yet experience a crash. But the shift in investment from free-spending state firms seeking resources to frugal private ones chasing markets and innovation is a positive sign.
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The loop is perfect...
The Chinese will never run America. You sir, are a fukking idiot.