I was expecting more intelligence, but i am used to disappointment here.
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Hong Kong is Hong Kong
(they've been investing in Vietnam since early 90s, that is before Great Britain returned their colony to mainland China).
unless I said
ALL honkong's invest money came from china (which I didn't), what you are saying does not contradict my piont that china company setting up shell company to invest overseas.
Chinese companies, especailly private companies, has been setting up shell company in HK long before HK's return to china.
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China has to invest in China.
(although they will probably invest in Vietnam, no need to hide behind any screen company; just like Vietnam is probably also investing in China).
China invests wherever there is profit to made, investing domestic is always a priority, but that doesn't mean china
has to invest in china. your point is nonsensical, not to mention false.
also Chinese companies are not trying to "hide" behine a screen company. thos setup makes real business sense, and saves trouble and money for any profit chinese business.
China has a strict control of capital flight, while HK has one of the freest economy in asia. Operating out of HK for investment purpose has the real advantage of less govt meddeling and paper work.
also HK as a separate WTO entities enjoys lots of preferential accesses to most world markets without the communist planned-economy bull$hit stigma which usually comes with a mainland china state owned business.
China's big SOEs(State owned Enterprises) usually can't do this trick because of state regulation, but local government will always try to sidestep the rules whenever they can just to make more money.
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just like Vietnam is probably also investing in China
I am sorry but I never heard any viet investment in China
one the other hand, it's not hard to find out china business news on any major news outlets, here's a piece of news for you to chew on: China invest $5 Billion in Canadian mining comany.
http://seattlepi.nwsource.com/business/apb...0Going%20GlobalQUOTE
SEATTLE POST-INTELLIGENCER
Thursday, October 21, 2004 · Last updated 11:01 a.m. PT
China Inc. quickly raising global profile
By ELAINE KURTENBACH
AP BUSINESS WRITER
SHANGHAI, China -- Never heard of Sanjiu? Bluestar? Baosteel? Minmetals? You soon might.
These Chinese companies aren't yet in the pantheon of globally known names like Sony, Daimler-Chrysler or Citigroup, but China Inc. is fast raising its international profile with a corporate buying spree, spending billions on companies and resources to feed its growing industrial juggernaut.
Metals trader China Minmetals Corp. is leading a bid by a consortium of major Chinese state companies for Canada's biggest mining company, Noranda Inc. The five-member consortium also includes Baoshan Iron & Steel, known as Baosteel; Citic Investment Corp., Jiangxi Copper and Taiyuan Iron & Steel.
Such deals have Beijing's blessing: After decades of struggling to prevent Chinese companies from spending precious money overseas, the government is pushing them to invest abroad.
"The story now is not the flow of foreign investment into China, but the flow of Chinese investment overseas, and its impact on other countries," said Bob Broadfoot, a Hong Kong-based business consultant.
The Noranda purchase would be China's biggest foreign acquisition so far, worth up to $5 billion. The biggest U.S. deal to date was state-owned China Netcom's $1 billion acquisition of Asia Global Crossing, a subsidiary of U.S. telecom giant Global Crossing.
Chinese companies have made other high-profile acquisitions:
-Earlier this year, the leading rivals in a high-profile battle for control of South Korea's No. 4 automaker, Ssangyong Motor Co., were both Chinese. Shanghai Automotive Industrial Corp. won, beating China National Bluestar Corp., a petrochemicals company.
-China's largest drug manufacturer, Sanjiu Enterprise Group, bought a majority stake in Japanese pharmaceutical maker Toa Seiyaku Inc. It was eyeing the drug unit of cosmetics giant Kanebo before its expansion was derailed by financial troubles at home.
-And Electronics maker TCL Corp. bought Schneider Electronics GmbH, one of Germany's few remaining television makers. TCL has since merged with France's Thomson SA, which owns the American television brand RCA.
Foreign acquisitions of U.S. household brand names like RCA have become commonplace in this age of globalization. So China's purchases of building blocks for its own industrial empires are drawing less attention than the multinational shopping sprees of Japanese companies a decade ago.
Unlike Sony's purchase of Columbia Pictures or Mitsubishi's takeover of Rockefeller Center China's deals have been low-profile and focused on less glamorous but more vital resources: oil, gas, minerals, timber - even fish. More than 2,200 Chinese-owned fishing vessels ply the world's oceans.
Other big state companies like China National Petroleum Corp., parent of PetroChina Co. and China National Offshore Oil Corp., or CNOOC, are buying into Indonesian oil and gas fields. Through the end of 2003, China had invested more than $6 billion in 58 overseas oil and gas projects, the Communist Party newspaper People's Daily reported recently.
Overseas investments in mineral ventures totaled $1 billion.
Overall, Chinese companies had invested $33 billion in 7,470 companies in more than 160 countries and territories by the end of 2003, according to the Ministry of Commerce. In 2003 alone, direct overseas investment by manufacturers and other nonfinancial companies totaled $2.8 billion. That figure is dwarfed by foreign investment in China, expected to hit a record $60 billion this year.
The growing Chinese presence abroad is nonetheless sparking a backlash among some overseas who are critical of Beijing's human rights record and other policies.
"The problem ... is what can, or should, be done to prevent such a merger?" columnist Peter Foster wrote in Canada's National Post about the Minmetals bid for Noranda. "There certainly is a moral issue here."
Acquisitions of U.S. companies have raised some objections, though in most cases deals have been structured to minimize those concerns.
Hong Kong-based conglomerate Hutchison Whampoa withdrew from a bid to buy Global Crossing, the former parent of Asia Global Crossing, after questions arose over whether a U.S. telecommunications network should be controlled by a company with close ties to the Chinese government. In the end, Global Crossing was sold to a joint venture owned by Hutchison and Singapore Technologies Telemedia, with the Singaporean company financing the deal.
U.S. law calls for reviews of foreign takeovers of companies handling defense contracts or strategically critical technologies. In 1990, then-President George H.W. Bush voided a 1988 purchase of a Seattle aircraft parts maker, Mamco Manufacturing Co., by state-owned China National Aero-Technology Import & Export Corp.
The ruling, made on national-security grounds, came amid a cooling of ties with Beijing following the 1989 crackdown on pro-democracy protests in Tiananmen Square. But the U.S. government rarely blocks such deals, preferring to emphasize its openness to foreign investment.
Although the Chinese government is openly encouraging companies to "go global," it is only indirectly involved in such deals. The state holds controlling stakes in many companies, but Communist Party bureaucrats no longer fill management posts.
The Minmetals deal reportedly has financial backing from the state-owned China Development Bank. But in many cases deals are self-financed. Big companies like PetroChina and CNOOC have raised huge war chests with overseas share offerings.
The close ties between government and business - much closer, even, than in Japan - might be a liability but they also give Chinese companies leverage, consultant Broadfoot said.
The Chinese, said, "have the ability to argue with foreign companies that 'if you want access to our market, you have to sell us a stake in your company.'"
