RE: The kind of capitalism we practice in the US is not the kind of capitalism practiced in the PRC. We are not playing on an even playing field. And remittances from nationals in the US to their home countries total over $50 billion a year with $12.2 billion going to China annually.
You are IGNORING THE OTHER SIDE OF THE EQUATION.
China is also INVESTING IN the USA.
From energy to aviation to entertainment, Chinese investment in the U.S. swelled to a record last year.
I’m not sure we have to FEAR such trade.
The Chinese energy giant invested $2.2 billion in 1.2 million acres in Devon’s position in the Tuscaloosa marine shale in Alabama and Mississippi, the Niobrara in Colorado, the Mississippian, the Utica Shale in Ohio and the Michigan Basin. Why is that a bad thing?
Dalian Wanda Group completed the biggest purchase of a U.S. company by China when it bought AMC Entertainment Inc. for $2.6 billion. Why is that a bad thing?
By the end of this decade, Dalian expects to invest another $7 billion in the U.S. Why is that a bad thing?
A revival in U.S. automotive market has attracted a growing Chinese population and business network to Detroit. Membership in Detroit’s Chinese Business Association counts over 100 Chinese owned businesses, most auto-related, in the region. Well, no one wants to go to Detroit, but the Chinese are willing to take the risk. Why is that a bad thing?
Chinese Internet company Tencent took a majority stake in Santa Monica-based Riot Games worth roughly $400 million in 2012. Best known for the blockbuster game League of Legends, Riot Games boasts the game has amassed 32.5 million players, 11.5 million who play monthly and 4.2 monthly who play daily.
In March 2012, League of Legends became the No. 1 title in Korean PC Café. In Taiwan, estimates are 5% of the city’s entire population plays the game.
Those games are made, designed and programmed HERE in the USA. Why is that a bad thing?
What kind of “capitalism” are they practicing differently that we in America aren’t practicing when our businessmen go overseas to their territory?
These are nationally approved and designed investments. We have to look very carefully at what the Chinese are investing in. They are stealing our technology and intellectual property. They are insinuating themselves in industries that involve national security. They have launched major cyber attacks against the US. They are manipulating their currency. They are not our friends.
In 2012 China invested $77 billion in the US. This represents just 2% of total foreign investment in the US.
"For now, Chinese companies seem most interested in the U.S. energy and service sectors, particularly real estate and financial services. In energy, as in other sectors, they are pursuing technology and expertise they do not yet have. Chinese investors are, for example, acquiring companies with fracking technology, a field in which they are several generations behind.
If current trends continue, much of China's outward FDI will be made by Chinese state-owned enterprises. These SOEs receive substantial benefits from the central and provincial governments that are not available to their foreign competitors, including preferential policies and low cost of capital.
These SOEs are increasing their global presence, seeking to expand China's economic reach and power around the world. They are involved in aerospace, autos, oil, steel, and telecommunications, all industries that the Chinese government have designated as strategic. U.S. companies may face an uneven playing field when competing against Chinese SOEs in the United States and in the global market while enjoying none of the benefits afforded to SOEs by the Chinese government.
Why is that a bad thing?
If you read the entire 130 page hearing transcript, you might understand why Chinese investment in the US should be looked at very carefully. The Chinese have some strategic interests guiding their investment decisions. Again, they are not our friends. At the very least, they are our biggest competitor and at the worst, they are our enemy.