riznick said:
momopi said:
http://blogs.wsj.com/economics/2016...d-production-to-south-carolina-to-save-money/
...like the Japanese in the 80's, China companies and investors are on buying spree like... Mainland Tourists at Coach outlet store. However, time will tell if their investments are profitable or lemons.
Japanese were small beans compared to the Chinese. Chinese investors are nothing like Japanese investors. China's been having a huge impact all over the world. Previously we were bleeding money to china in exchange for cheap products. In the future, we will be bleeding money to china in exchange for housing or a job.
I'm not trying to bash China. I'm just showing concern for the long term impact that these things are going to have.
I cannot speak for 20 years in the future, but in terms of historical comparison, the total dollar amount of cumulative investments from Japan to US in 1980-1990 is roughly comparable to China's direct investment to the US 2005-2015 (prolly not adjusted for inflation). There are 8 top investor countries that account for 80% of total cumulative investment value in the US, and China is not on the list (yet).
China's direct investment to US in 2015 is estimated at 15.7 billion (SCMP), which is roughly 1/3 of Japan's direct investment in US in 2013 ($44.9 billion). Some overly optimistic writers have suggested that the total cumulative investment from China to US "could hit $400 billion" by 2020. Well, good luck on making that $300+ billion gap in 5 years.
http://www.ofii.org/sites/default/files/FDIUS2014.pdf