Your Questions About How To Invest In China

Ken asks…

did Western investment banks invest in China & Japan war build up…same as they did with Germany vs. Russia?

how similar? how they funded political parties in China, and how they helped China and Japan build massive mililtaries…similar to Russia and Germany,,? and why helped their investment prospects in future after the “World War 2”? and why?

John answers:

Try to google this one. Browsers have a lot of information on many subjects. I have found it very helpful.

Jenny asks…

How safe is it to invest in large scale businesses in China?

According to this report, it looks to me that the Chinese government is in the habit of providing massive loans and behind-the-scenes assistance to start up a competitive business once they have their hands on the intellectual property.

‘When Hilead went after CIB’s market, the Chinese government used its power to make it more expensive for CIB to get capital and to buy utilities such as electricity and waste water treatment, according to the Times.

There are many lessons that arise from this case. But one stands out — the odds are very low that a provider of capital to a Chinese business that competes on IP will earn an attractive return.

But CIB could not protect its patents in China and the Chinese government’s decision to help out Hilead slashed the value of the $120 million that Goldman and its peers invested in CIB.

What the Chinese government did has a name: “guojin mintui.” As the Times pointed out, this can be translated as: “while the state advances, the privates retreat.” What good does it do an investor to boost the value of such Chinese IP only to have the government take that IP without paying through guojin mintui? And if so, how can a capital provider profit from investing in China?’

I was going to invest in an electric car factory in China, but I now think I should take it elsewhere.

What do you think?

John answers:

Hi there,
Most of the news that you read from the media is partially true but again there are many loop holes where the capital provider are able to profit from their business. It’s never been easy to do business with china but again there are a lot of foreign investors who made it successfully here.
We ( company ) came in acting as a representative office for our principle 12 years ago ,we were also an agent for them ( German company ) back in Asia then but unfortunately we will taken as a buffalo pioneering the businesses for them, they later sold the business to a Chinese company because we did a fabulous job, so we decided to start moving in to manufacturing and trading, believe me it’s real hard work dealing with every one from the least important to the top guys Submit documents and not forgetting those heavy expenses to entertain those big guns.) all this took years and now only we are seeing some rays coming in our window. Btw, we arein Led manufacturing, we
have a group of experts team in Taiwan already providing R&D to countries like Dubai ,china etc. Their are many pros and cons that you need to know how to move around with it but of course getting the right honest people are the most important. We have learned our lesson well being conned a couple of times.

Mandy asks…

By what right does the USA ‘express concern’ about China’s military build up?

The USA loves to preach to the world about how every other country should cut back on its military in the interests of world peace. Doesn’t that seem hypocritical while the USA is putting billions into further into its military by keeping soldiers in Iraq, threatening acts of war against Iran and upgrading the USA’s own nuclear arsenal.

And now the USA is complaining about China investing more in their own military capability.

Is the USA scared that it will lose its ability to bully every other country in the world when there is a bigger badder boy on the block who the USA has to respect as an equal or even as a superior in military might.
C J. “In your own words China has more than enough ability to defend itself, why the masssive build up”. Now insert the letters USA in place of China, eg the senate currently debating a 1.5 billion dollar nuclear upgrade for USA nuclear and you maybe got a reason why China feels it needs to build up its military in response.

About Iran the USA is threatening to attack Iran, not vice versa.

And about baddest kid on the block, how do you think 3 million people scraed to die for their country will fare against 1.4 billion who are not? Don’t believe in Hollywood too much, it isn’t real (Santa Clause too)
CJ. PS, about Korea. You must have forgot, you did lose! North Korea is still communist even today. You then went on to further glory losing in Vietnam, Nicaragua, Cuba and Iraq TWICE so far.
Foreveramused. It is the USA that throws its weight around telling other countiries what to do and threatening to attack Iran. The USA doesn’t use its weaponry as a deterrent, it uses it to dictate to other countries. The USA is the country like the guy you described who comes to your house and Iran is like the people wanting to deter him from comming.

John answers:

The USA is responsible for 48 per cent of the world total (defence expenditure), distantly followed by the UK, France, Japan and China with 4–5 per cent each.

The US Department of Defense funding for Iraq & Afghanistan for financial years 2003–2005 amounted to approximately $238 billion and exceeded the combined military spending of Africa, Latin America, Asia (except Japan but including China) and the Middle East in 2004 ($193 billion in current dollars), that is, of the entire developing world.

So it is Cheney / US and NOT China who are actually driving the arms race?

Thomas asks…

Is it unpatriotic to admit that the United States is not the “best” at everything?

Falling further and further behind in education, science
China investing far more in renewable energy and clean water production
Falling behind in quality of healthcare and way behind the rest of the world in cost
Government now run by special interests and corporations
It goes on and on – jails, jobs, quality of life, life expectancy, crime…

If we don’t admit that there is a problem, how can we find a solution?

John answers:

It’s not unpatriotic to state the truth. Unfortunately I think that you’re right in your assessment.

Daniel asks…

Why do western countries have a bad impression on China?

I think they misunderstand us a lot…
1. CNN = Chinese Negative News, always targeting us and saying bad things about us and distorts reality.
2. Tibet – Tibet has been part of China for a long time. How is it an illegal invasion if the 2 sides agreed? (17 point agreement).
The destruction of the culture only happened during the Cultural Revolution, which Mao admitted was a huge mistake. China invests billions of dollars every year to help Tibet.
3. Communism – China is communist, but not purely communist. If it is truly communist they why are people still living in poverty?
4. Human rights – From my research, the authorities on torture if the prisoners misbehave and the truth seems to be distorted by the western media. So if you don’t want to get tortured you. And for the USA, they have severe human rights violations as well, and the Amnesty International 2011 report on USA is very interesting…
5. Democracy – There are elections are village level, and soon it will be city elections, then it will be national.
6. Corruption – Yes, there is corruption, but apparently it is not the high rank leaders that are, but it is the members, and the government are cracking down on the corrupt members and imposing severe punishments.
7. Censoring – I agree porn should be censored. And the state TV news is fair enough, what’s wrong if it is censored???

I visit my hometown in China in the holidays and I don’t seem to have a problem with it. And I live in one of the most democratic countries in the world…

I might be lucky and priveleged and you might say I haven’t seen poverty. I have been to the countryside and rural China and I have seen poverty. Lot’s of ,my relatives live in rural China and still they have basic stuff and they are happy.

Screw the biased western media distorting China‘s situation.

John answers:

Hello, not everyone in the West has bad impressions about China but let me answer your questions one bye one and point out how your thinking is incorrect.

1. If you read the likes of CNN a politically bias newspaper then you are sure to pick up a bias view, in fact using CNN as a source of Western impressions about China is bias. Why? Because there are hundreds of thousands of media sources out there all with a different view about China. If you go around picking the bad, why not try the independent, the Sun (yes I’m joking) and grass roots newspapers for a different view.

2. It is the same with the unequal theaties if China agreed with them how can they be illegal or unequal, but it doesn’t mean that Hong Kong has, is and always been a part of Britain. Likewise if Tibet agreed under threat of force then you can claim its an unequal treaty. Also Tibet wasn’t part of China for a long time. As China is in control of Tibet nowadays it is their duty to upkeep it.

3. China is communist because its a single party state and if I recall in its constitution it proclaims professed allegiance communist ideology. Therefore it can be labelled as a communist state.until it changes this, by definition its a communist state.

4. From my connections who work in the highest courts in China and conversions with them its lacks due process this is what the complaints are about. Lawyers are refused access to their clients, cases are lost because judges are bribed/leaned on and people are sentence to jail based on “confession” without any other evidence, more often than in other countries.

5.Village leaders and such don’t have any real power in Chinese politics often they are just used as the messaging between Higher official who often have plans in what the country/village should do.

6. See answer to 4

7. Censorship of Chinese news, especially critical of China, is just as bad as that infamous photo by CNN of A.P.Cs rolling into Tibet during the riots.Censoring the news is just as bad as CNN not showing that burning car in that photo, many Chinese thought his was unfair as it didn’t give the facts. News censorship that doesn’t give the facts or cuts out stuff it doesn’t want to talk about is simply photo cropping. If you can understand this then you can see why it is bad.

As for living and being happy then for most people who haven’t seen better they simply just get on with their lives.

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