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2017
Asia Needs more Dialogue
Solutions to urban pollution may prove complex
Spread of ESGs could herald new global movement
Investing in quality education is imperative if India wants to reap demographic dividends
China needs to lead in new multi-stakeholder world
China’s B&R initiative leading a resurgence of Asia
Education is key - but long-term: Can we survive?
New wave of robots will be beneficial to all
China needs to continue with its ‘heavy lifting’
Time is right for Chinese firms to invest in Europe
Robots to the rescue for China?
Asian Multinationals are Going Global, But to Where?
China ratchets forward with energy efforts
China’s calm necessary for globalization push
Bridging managerial gaps involves trust-building
China well-placed to power its future through green technology advances
China's new 'springtime' is here
2016
China’s moves show it’s banking on the future
Mindset for action at the G20 summit will be determined by Chinese presidency
Chinese head-hunting intensifies for rare managers that can steer overseas firms
US talk of isolation jars with growing links in Europe and Asia
Electoral rhetoric on global trade not in sync with reality
Is it time to be prudent and consider austerity policies again?
What will we do if we have no oil?
Unlock talent by finding the right fit for a person
The benefits are real and tangible
Trade along China’s ‘One Belt, One Road’ won’t succeed without the currency of trust
Reasons for optimism about the long term
2015
Can big oil go green and win?
Poorer Nations Could Sway Climate Talks
Combating Idleness and Deprivation
How China can be a model of food sustainability for the developing world
Kyoto II – Is it a Done Deal?
A meeting of the two largest economic powers
Why China will experience a 'soft' landing
Beware of superstitions
The Elephant and Dragon move ahead
G-7 target on fossil fuels raises many questions
Why Battle for Net Neutrality in the US Matters Globally
China’s resurgence – the ‘normal new’
Wanted: A managerial culture that embraces cultural differences
China's early education plan a smart investment in the future
The New Normal for China and India
2014
China's infrastructure push offers a sure track to better growth
US-China climate pact a good start, but not quite enough
Rethink the human’s place in the ‘digital revolution’
China springs a carbon surprise
Infrastructure - the invisible hand in full view
Dialogue vital for survival of Iraqi nation
China must nurture a new generation of beautiful minds
Great expectations in China and India
GM Cereals – The Pros and Corns
Time to be Honest about Our Energy Prospects
Weathering the Storm of Climate Change
Making a Big Decision? Beware of Your Biases
West Deserves Better Logistics Infrastructure
Digital Currencies do Represent the Future
From 'Printed' Houses to Wooden Skyscrapers
It’s time to bail out our schools, not our firms
Solution to India’s housing shortage – print new ones!
And the most promising green technologies of 2014 are ...
Transport infrastructure key to domestic, export growth
Oil stopgaps: Not worth risking
2013
Why the US should grant Edward Snowden amnesty
May we be more optimistic!
China headed for another massive social experiment?
A dialogue that worked
Yes, politicians deserve vacations - because we benefit
NPOs, NGOs invaluable as creators of dialogue
Look closer and ask: Is America reinventing itself?
Boston bombings case underlines need for dialogue
Millennium Development Goals or own goals?
As usual it's about balance - and timing - of course
Chinese strategists make right moves for growth
2012
Preparing for tomorrow
Austerity or growth?
Japan in danger of becoming 'just a place to fly over'
Beware of the business cycle?
An inconvenient truth
Limited offer sale: Buy a country
Where did our money go?
Leading from behind - a year of elections is almost over
Driving towards a green future
Waiting for springtime
Preserve or Perish
Startlingly similar Asia policy for Obama, Romney
Globalisation remains an irresistible trend
Google has the edge in smartphone war
U.S. Braces for China's Rise
Mankind’s General Scourge
The summer holidays are over and nothing has changed!
Put the hidden trillions to work
Making sense of India’s woes and wonders
Storm in a teacup!
Let’s give bad bankers a venue to admit their sins
News is about depth, not puff or velocity
Booming India, but too few toilets
Delayed Court decisions doesn't mean one may continue to play 'Great Game'
We need media to reflect on data and offer public a balanced view
Big polluters can lead in forging common purpose
The weighty issue of choosing a leader
EU-India Relations - Facing similar challenges
Educating with a goal
The Judicial Malaise
We are growing out, but not growing up
EU´s retrenchment enigma
Urbulence in the Eurozone and the effect on SMEs
Skolkovo May Help Russia to Diversify
Make things more effective
Tapping into the Commonwealth connection
Innovative models for public finance
Facebook revolution but Indian style
The feel-good factor
Asian investors - a private equity opportunity
India needs to be taller and stronger
China´s low sales volume...
Nations playing leapfrog
Shafts of sunlight
What webs we weave
As performers go to Davos, the circus steals the show
Can we control the politicians?
2011
Europe’s reminiscence
China firms should go for win-win in overseas ventures
Of procrastination...
Making sense of profiteering
Truth about financial mess must be laid bare
Small is also beautiful
China can help Europe with debt crisis
Excising the cancer of global corruption
Education, a critical asset
Arab uprisings set in motion forces of creative destruction
A new era of change
We must ensure better education for all
Beijing wary of bankrolling a lost cause
Asean's re-emergence as a local and global leader
Why India's Role in the Global Economy is Still Work in Progress
Its the leadership, stupid!
Reverse globalisation: The new buzzword
China can help Europe with debt crisis
By Frank-Jürgen Richter
China Daily, October 27, 2011
 

China is becoming increasingly involved with global governance. As the sovereign debt crisis in Europe continues, Premier Wen Jiabao said last month that China will be a friend to Europe. The question is: how will China help alleviate the sovereign debt crisis?

Zhang Xiaoqiang, vice minister of the National Development and Reform Commission said: "For those countries experiencing a sovereign debt crisis, we are willing to lend a helping hand to buy some of their bonds."

Buying European bonds is possible since China, the world's second largest economy, has more than $3 trillion in foreign currency reserves.

But the West oscillates between two extreme positions regarding China.

The first is protectionism where acquisitions by Chinese companies are being blocked. Many in the United States oppose such acquisitions claiming they are a serious risk to national security and a number of Chinese investment proposals have also been blocked in Europe.

The EU's industry commissioner, Antonio Tajani, recently said that some European countries are worried that Chinese companies are looking to buy European businesses to strip them of their technology. According to Song Zhe, China's ambassador to the European Union, background checks have been conducted on Chinese companies, which have left many Chinese businesspeople with the impression that the European investment environment is deteriorating, causing them to postpone or even cancel their plans to invest there.

Chinese companies have been favoring Europe over the United States as the Committee on Foreign Investment in the United States (CFIUS), frequently stops Chinese firms from buying US companies on the pretext of national security.

Recently, Alibaba Chief Executive, Jack Ma, reiterated that the Chinese e-commerce company is interested in purchasing Yahoo, Inc. But according to analysts, any potential deal is likely to be blocked by CFIUS on the grounds it could harm national security. As was the case in 2005, when China National Offshore Oil Company Ltd withdrew its offer to buy UNOCAL, the ninth largest oil company in the US, following what it described as "the unprecedented political opposition that followed the announcement of our proposed transaction".

The second position is using China as a lender to bail out the West. It is evident that China has an interest in a healthy European economy, especially since Europe has expertise in sectors such as aerospace, automotive, technology and luxury brands.

However, both positions do not reflect China's true standing in the world. When Chinese firms take over foreign assets, they usually do not remove the existing management and workforce. Instead, they integrate the acquired firm in their existing operations. For instance, when Geely, one of China's largest car companies, acquired Volvo. Geely preserved Volvo's identity and succeeded in doing what Ford, the former owner, failed to do.

As the sovereign debt crisis continues, Europe should accept help from China. As Premier Wen Jiabao said, Europe needs to put its own houses in order to stop the crisis from spreading and affecting other countries. The West should look at China from a strategic point of view and recognize China's market economy status, which is what China has been anticipating since it began its economic reforms in 1978.

However, according to EU leaders, China has not yet met the necessary conditions, since most of China's largest companies are State-owned and their leaders appointed by the government. But the borderline between private and State-owned is blurring and most State-owned firms are being transformed into agile players, partly powered by foreign capital.

And even though State-owned companies are still very powerful, private firms are the driving force behind China's growth.

Based on the World Trade Organization rules, China will eventually get market economy status by 2016. Achieving this will help China avoid anti-dumping measures and boost bilateral trade, and will benefit both sides.

 

The author is founder and chairman of Horasis, an independent international organization committed to enacting visions for a sustainable future.

 


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