PJ Media, April 4, 2013
–Article by Ying Ma
In the 21st century, China looks like it could buy the world. With over $3 trillion in foreign currency reserves, China is the largest foreign holder of U.S. debt. Its sovereign wealth fund owns minority stakes in prominent U.S. financial institutions such as Morgan Stanley and the Blackstone Group, and Chinese state-owned corporate behemoths span the globe, gobbling up assets and resources from Australia to Canada, from Southeast Asia to Latin America.
U.S. policymakers know well that Chinese foreign direct investment (FDI) brings jobs and other benefits to Americas weak economy, but many are alarmed by the influx of businesses that seem to respond to Beijings edicts more than they do to market forces. China’s international bad behavior, such as aggressive cyber attacks against Western firms and government agencies, only magnifies the dangers of doing business with Chinas government-affiliated entities.
Nevertheless, U.S. policymakers should not mistake the national security threats that China poses for the economic omnipotence of Chinese firms. In a world of intense global competition, and frequent hyperventilation about America’s impending decline, avoiding an inclination to overestimate or panic over the prowess of Chinas state-funded endeavors may be difficult, but would also be sensible.
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