Monday, 2 July 2012

Chinese Investors Make Investments to Help Europe's Economy

Well it seems it was only going to be a matter of time, before China began to take advantage of Europe's weakened financial state.  Premier Wen Jiabao’s recently announced a $10 billion special credit line, for joint investment projects in east European infrastructure and technology. In Moscow, 27 deals with companies worth $15 billion were recently signed, as well as 7 more in Hungary, that included a $1 billion credit line for a rail link to Budapest airport; built by the Chinese. As well the Chinese shipping giant, Cosco, is in negotiations that could result in an investment of $1 billion to develop Croatia’s Adriatic port of Rijeka.

Since Europe is China's largest marketplace, some people have argued that Chinese investors, are simply strengthening their presence. Certainly if Europe were to collapse, then the ripple effect would be felt; in China as well. Because over 60 percent of the world's goods are manufactured in China, the Chinese have a vested interest in making sure their global consumer marketplace remains healthy, in order for other countries to purchase the products they have developed; for sale.

From a business perspective, Chinese investors have emerged to make investments, that will protect their marketshare; and increasing their holdings at the same time. One thing that is for certain in the global world of business, is that the consumer demand will always dictate the outcome. It would seem that the Chinese investments around the world, have been introduced to meet the rising consumer demand, and maintain consistency in the global progression of international supply and demand; that is vital to rebuilding crippled economies.

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