Saturday, June 26, 2010

CHINESE 14 AGREEMENTS


US banking and financial companies created the huge debacle sinking hole of Greece and other European nations through its toxic loans provided and shown to the nation as cash lending’s and not real loans which will be required to be paid one fine morning. If we make quick look for how the US banking system created the sinking hole for European countries we find:
• Instruments developed by Goldman Sachs, JPMorgan Chase and a wide range of other banks of US enabled politicians of European nations to mask over the additional borrowing in Greece, Italy and possibly elsewhere beyond means of payment by them in the future.

• These banks provided cash upfront in return for government payments in the future.

• They were never recorded as loans in the books of these European nations.

• These raised the bars of liabilities of these countries and mislead investors and regulators about the depth of a country’s huge liabilities which were beyond the capacity of payment.

• In 2001, just after Greece was admitted to Europe’s monetary union, Goldman helped the government quietly borrow billions, people familiar with the transaction said. That deal was hidden from public view because it was treated as a currency trade rather than a loan. This also helped Athens to meet Europe’s deficit rules while continuing to spend beyond its means.

Now its now well clear to my readers from all other sources of media that US financial and banking system was behind the creator of the devil of huge debt burden for Greece and other economy.
In the same way we have heard that China is under severe strictures of holding a monopolistic business module over the world market. Devalued Yuan, cheap exports, holding 605 of US treasuries makes Chinese economy to face vulnerable strictures.

At the same time I am compelled to say that china does not plays game like US banking and financial systems. We should not forget that the Chinese monopolistic business module helped the world economy to come out of the recession. Moreover these monopolistic business modules have been adopted by china from none other than US economy. But china is now ready and coming up with a new series of business plans which will give new identity to Chinese economy in coming decades. When the world economy was busy throwing criticism and fear of another debt full recession for Greece and other European nations china came out with a clear steering supportive business plans fro these nations.
China has signed deals with Greece and other European nations related to investments. Yes china have took the courage of doing investments in Greece and other European nations around billions of Euros.

China have made deals of 14 agreements with Greece and other European nations. Some of the projects agreed include the building of a series of super-size bulk carrying ships, the building of a big hotel and shopping mall complex in the port of Pireaus, and technology sharing between Greek and Chinese technology and telecommunications companies. A glimpses of the deals signed between the two nations are:

• Cosco, one of the world's largest container terminal operators, will extend its reach with the construction of up to 15 dry bulk carriers in Greece. The company took over cargo management at Pireaus, the eastern Mediterranean's premier dockyard.

• The Chinese construction company BCEGI also signed an accord, thought to be worth €100m (£830m), to develop a hotel and shopping mall complex in Pireaus.

• Other deals include the exchange of know-how between China's Huawei Technologies and the Greek telecoms organization OTE and four agreements signed by food firms to export olive oil to China.

The most strange thing about all these deals are that it has happed in such times when the Greece and European nations are humiliated and criticized for their s economic activities. Chinese government will encourage Chinese businessmen to come to Greece to seek investment opportunities. So summing up all together its well clear that if an economy is having a super power identity it needs to diversify the strengthen to develop the underdeveloped nations. Do you think that US have ever played this ball game when its was a super power economy.

But why china is doing this activity?

China is not only doing this activity just to make gains from abnormal situations of Greece and other European nations but its in real term diversify its business and its economic development plans to other underdeveloped nations too. China’s national pension fund plans to increase overseas investments in stocks and bonds, including securities in Taiwan, to boost returns as global markets recover from the financial crisis.

China is increasing sits investments in Africa too. By 2006, it was $55 billion, and in 2009 it hit $90 billion, making China Africa's single largest trading partner. Infact it have replaced the U.S., which did $86 billion in trade with Africa in 2009.If we look into the depth of the investments being spread by china in Africa we find that:
• Chinese are pumping oil from Sudan to Angola, logging from Liberia to Gabon, mining from Zambia to Ghana and farming from Kenya to Zimbabwe.

• Chinese contractors are building roads from Equatorial Guinea to Ethiopia, dams from the Congo to the Nile, and hospitals and schools, sports stadiums and presidential palaces across the continent. They are also buying

• Acquisitions range from a $5.5 billion stake in South Africa's Standard Bank to a $14 million investment in a mobile-phone company in Somalia.

• Even IMF have raised and acclaimed that he Chinese model for African development has some advantages.

First, it's quick. Loan talks with multilateral agencies take years.

• The Chinese just ask what the government wants, and they don't question or comment or judge. They just execute the demand raised by African government.

• China also works as visibly as it does quickly. It has no tendency of doing business with a prolonged period feature.

• Drive across almost any African country today and you'll find Chinese engineers by the side of the road, sleeves rolled up, and overseeing work crews.

So those who were having the some questions of doubts regarding why china is spreading it up I hope its now well clear to them that apart from political reasons and economic its more of that type where china is showing the qualities of a super power economy. Now its also clear that its not a charity and no nation can do charity. But even doing that for any economy is also not a easy ball a game
China is now is diversify its resources and also spreading up its business developments. Remember one thing one cannot grow alone. You need to grow with others and china is exactly following this steps.

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