Chinese overseas investments are more feared than those from Japan, says consultant Arthur Kroeber of Dragonomics in an analysis by the newsagency Reuters on China’s economic future.
Arthur Kroeber, head of the Dragonomics consultancy in Beijing, is convinced that urbanization, productivity gains and fast-rising incomes bode well for
China to keep growing by 8 percent to 9 percent for the next few years. But one
risk he sees, drawn from Japan’s outbound investment record, is how China spends
its wealth overseas…. In China’s case, by contrast, banks and firms ultimately controlled by the Communist Party are buying into Western rivals.
“Are they pursuing commercial motives or some political motive?” Kroeber asked. “No one can tell, and that makes people nervous.”
The risk of a protectionist reaction is all too real, especially in a global economic downturn.
Arthur Kroeber is a speaker at the China Speakers Bureau. If you are interested in having Arthur as a speaker, or one of our other China-specialists, do have a look at our other speakers who can address government relations in China.
