Germany’s Chinese investment problem
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Germany’s Chinese investment problem
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Re: Germany’s Chinese investment problem
#2I wonder why...
Re: Germany’s Chinese investment problem
#3"Oh woe is us. Who will save us from downing in all this Chinese money."
There were exactly the same concerns about Japanese investment back in the 80s. Now doing business with Japanese firms and companies like Sony owning major American firms is just natural. They're not weird alien creatures from space anymore, they're our business partners and investors. It's normal. The same will happen with China.
Re: Germany’s Chinese investment problem
#4"Oh woe is us. Who will save us from downing in all this Chinese money." There were exactly the same concerns about Japanese investment back in the 80s. Now doing business with Japanese firms and companies like Sony owning major American firms is just natural. They're not weird alien creatures from space anymore, they're our business partners and investors. It's normal. The same will happen with China.
I think China is going to be greatest civilization... or that's their aim. And with their population and level of growth they may very well get there.
Re: Germany’s Chinese investment problem
#5"Oh woe is us. Who will save us from downing in all this Chinese money." There were exactly the same concerns about Japanese investment back in the 80s. Now doing business with Japanese firms and companies like Sony owning major American firms is just natural. They're not weird alien creatures from space anymore, they're our business partners and investors. It's normal. The same will happen with China.
I think China is going to be greatest civilization... or that's their aim. And with their population and level of growth they may very well get there.
They will have to become more democratic and accountable to their population first. Up to now they have been able to buy off their middle classes with rising incomes, once that stops as it inevitably will those people will start calling for more representation.
Re: Germany’s Chinese investment problem
#6The truth is EU companies are being sold to US and Chinese companies.
In the case of the US this is incentivized by the goverment (maybe indirectly) because US-based companies have to pay taxes for money they move to the US: in this case it is cheaper to use that money to buy invest overseas and get more market share.
China might not have a plan, but they actually have cash in hand and they are pushed to invest somewhere else because they cannot have that money at rest. They need to recycle that benefits and buying in europe makes sense because is a big market that makes easy to keep money flowing in a global scale.
Re: Germany’s Chinese investment problem
#7I am surprised to see Hacker News turning into China News recently.
Re: Germany’s Chinese investment problem
#8The truth is EU companies are being sold to US and Chinese companies. In the case of the US this is incentivized by the goverment (maybe indirectly) because US-based companies have to pay taxes for money they move to the US: in this case it is cheaper to use that money to buy invest overseas and get more market share. China might not have a plan, but they actually have cash in hand and they are pushed to invest somew…
> In the case of the US this is incentivized by the goverment (maybe indirectly) because US-based companies have to pay taxes for money they move to the US: in this case it is cheaper to use that money to buy invest overseas and get more market share.
Actually, that is not entirely correct. US companies are incentivised to invert and redomicile abroad (often in the EU), because that way they can avoid the global taxation penalty the US imposes. More often than not, an EU company acquiring a US competitor will be able to achieve more tax synergies than a US company acquiring a US competitor.
Re: Germany’s Chinese investment problem
#9As a point of reference: Chinese investors bought 37 German companies in the first half of 2016 (39 in all of 2015)[0]. It's noteworthy that those investments tend to be with the idea of a long term engagement. Also interesting that some (most?) of the companies have been bought and restructured and resold at a profit by funds. Buy, restructure and sell to the Chinese seems to be a common strategy.
I'm not a fan of the "we buy here, you can't buy in our country" mantra but by and large I see these investments less critically than most people I know. I think they are genuinely interested in keeping the companies profitable and importing/improving the technology (and not just strip mining for tech/ideas as many people claim).
[0, in German] https://www.welt.de/finanzen/article157037250/Chinesen-kaufe...
Re: Germany’s Chinese investment problem
#10Earlier quoted context omitted.
I think China is going to be greatest civilization... or that's their aim. And with their population and level of growth they may very well get there.
They will have to become more democratic and accountable to their population first. Up to now they have been able to buy off their middle classes with rising incomes, once that stops as it inevitably will those people will start calling for more representation.
A bit like how our own middle classes are not doing so great anymore compared to years prior and how our own population is calling for more representation. Which is why, as speculated by many, Trump got elected and Britain voted in favor of Brexit.
We better make sure we are still relevant by the time the Chinese have some internal chaos.