Chinese investments in the US have plunged -92% from its peak 2 years ago according to Mergermarket.
The game has long been that China has devalued its currency relative to the US dollar to gain competitive advantage on its exports. It also subsidizes all of its corporations because Communism by definition is government ownership of the means of production. It then uses these unfair practices to generate hundreds of billions of dollars which are used to buy assets in the U.S.I have been warning readers of GuerillaStockTrading for years about China buying influence in real-estate, Hollywood, media, banking, and more. The influence is so absolute that China was able to block the mainstream media in the U.S. from critically analyzing the systematic destruction of our manufacturing sector since 2001 when China was allowed to join the WTO. Think about that. China’s influence and lobbyists were so strong that they were able to influence the mainstream media to not report on the transfer of our entire manufacturing sector to China over the last 17 years! That’s power and influence folks.
The fact that the Trump Administration has slowed down the systematic take-over by the Chinese of the U.S. economy is great news.
The Chinese bought $34.4 billion in U.S. assets in the first three quarters of 2016. In the first three quarters of 2018, that number has dropped to $2.67 billion. Wow!
China’s economy is slowing down and its unfair trade practices scheme is failing.
The U.S. has adopted a policy of tougher regulatory measures for Chinese acquisitions in an attempt to slow down their takeover of major facets of the U.S. economy.
In 2018, we’ve seen several high-profile Chinese acquisition deals collapse because of the heightened U.S. scrutiny. The $1.2 billion acquisition of U.S. money transfer firm MoneyGram by Alibaba Group fell apart in January after a U.S. government panel rejected it over national security concerns. We also had Sino IC Capital’s failed merger with semiconductor maker Xcerra, and HNA Group’s failed bid to buy former White House aide Anthony Scaramucci’s SkyBridge Capital.
China Now Focusing On Canada
If China’s efforts have been thwarted in the U.S., then the next best country to target is our north neighbor Canada. Canada and Justin Trudeau better wake up fast instead of admiring the Chinese.
The Chinese government is buying up energy assets in Canada. During the first nine months of 2018, there were eight Chinese acquisitions in Canada’s energy sector worth $2.2 billion. This is a 600% increase from the $390 million in the first three quarters of 2017.
The mainstream media is acting like the lower investment from China into the U.S. is a bad thing. Maybe it is a bad thing for the stock market but only unpatriotic jerks would suggest that it’s bad for the U.S. long-term IMO. The globalists know that patriotism and nationalism are killing their business model. Better promote unpatriotic folks like Kapernick then!