Chinese Investors Flock to St Petersburg Forum Despite Sanctions | WHAT REALLY HAPPENED


Chinese Investors Flock to St Petersburg Forum Despite Sanctions

Chinese tycoons and business executives attending the St. Petersburg International Economic Forum believe that the Russian market offers a bonanza of lucrative opportunities.

Zhang Yichen, CEO of CITIC Capital Holding Limited, one of the largest Chinese state investment corporations, told Sputnik that while his company has only just begun assessing the Russian market, the prospects so far look quite promising.

"Our company came to the St. Petersburg forum to study the investment climate in Russia and to make new contacts. I believe that the projects offered by Russia look very promising. There are plenty of areas one could invest in: agriculture, technology, research, even real estate," he said.

Webmaster's Commentary: 

Congrats, President Obama and your administration, on having pushed Russia and China even closer together economically through the sanctions against Russia on an accusation you simply made up, and that would be the alleged annexation of Crimea by Russia (which never actually happened, as you know.)

And what is China doing, over the past year, with US treasuries and stocks?!?

Dumping them.

As reported on 15 June 2016 at bloomberg.com:

For the past year, Chinese selling of Treasuries has vexed investors and served as a gauge of the health of the world’s second-largest economy. The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows. While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines. The nation’s stash of American stocks sank about $126 billion, or 38 percent, from the end of July through March, to $201 billion, Treasury Department data show. That far outpaces selling by investors globally in that span -- total foreign ownership fell just 9 percent. Meanwhile, China’s U.S. government-bond stockpile was relatively stable, dropping roughly $26 billion, or just 2 percent.

WOW, that's really going to turn the American economy around, Mr. President, isn't it?!?

And by "around", sir, I mean on its head, like an egg, being thrown off a bridge, and hitting the concrete at warp speed.

And of course, your " economic legacy" will not only include this act by China, but also, what you have done to fix the trade balance deficit, right?!? Let's see just how swimmingly that has gone for you and the Administration, as of late.

As reported as of 3 June 2016 in usnews.com:

The U.S. trade deficit, after falling to the lowest point in more than two years, increased in April as a surge in imported goods outpaced a rebound in exports. The Commerce Department said Friday that the deficit increased 5.3 percent in April to $37.4 billion, up from an imbalance of $35.5 billion in March. Exports increased 1.5 percent to $182.8 billion but imports rose faster, increasing 2.1 percent to $220.2 billion. The politically sensitive deficit with China surged 16.3 percent to $24.3 billion, a development certain to heighten trade tensions between the world's two largest economies. So far this year, the deficit is running 4.8 percent below the pace set a year ago with a fall in imports offsetting further weakness in U.S. exports, which have been hurt by a slowdown in global growth. U.S. export sales have also been hurt by a strong dollar which makes American products more expensive on overseas markets. However, the dollar has weakened a bit since peaking earlier this year. If that trend continues, it could help export sales going forward.

You know, sir, I never used to think that one person in the position of President could make such a series of catastrophically bad domestic and international choices as to put the economy into a bitter, lousy tailspin for most working Americans, whose jobs have been offshored/outsourced to the degree that they are now working several part-time jobs, if they can find them, to try to make ends meet; but yes, you could, Mr. President!!

Yes, you could!!

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