Foreign investment in US plunged 32%

1 hour ago, Guillaume Albasini said:

For foreign companies investing in the US is becoming a liability.  The more you invest in the US the more you are exposed to US sanctions.

The European or Asian companies having heavily invested in the US or heavily depending of the US market are now the more exposed to Trump's blackmails (pull out of Iran or face sanctions... don't work on the  North Stream 2 pipeline or face sanctions...).

Is it still worth to invest in the US if this imply risking huge fines or loosing many other markets to please the US administration vagaries ?

 

that is why China is investing heavily in Africa. No questions asked, no risk, 

Share this post


Link to post
Share on other sites

4 hours ago, mthebold said:

You could equally argue that China's debt, lack of transparency, and tendency to screw foreign companies create serious business risks.  US companies may be better off reducing their exposure to China. 

Not to mention having your technology and trade secrets stolen.  I never understood the mad rush to invest in China.  It's a market that will never be all that profitable for US companies.

Share this post


Link to post
Share on other sites

2 hours ago, 李伟王芳 said:

For foreign companies investing in the US is becoming a liability.  The more you invest in the US the more you are exposed to US sanctions.

...

that is why China is investing heavily in Africa. No questions asked, no risk, 

??  How does investing the US expose you more to US sanctions?

Investing in Africa is no risk??  Ha!  Talk about lack of infrastructure, constant threat of war, not enough educated workers, a high level of corruption, etc.

There are REASONS why the economies of Africa suck.

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

(edited)

3 hours ago, RealusN said:

Investing in Africa is no risk??  Ha!  Talk about lack of infrastructure, constant threat of war, not enough educated workers, a high level of corruption, etc.

There are REASONS why the economies of Africa suck.

To quote my grandfather, who started with nothing and did quite well on farming, "Poor people have poor ways." 

In Western culture, we've developed the bizarre idea that we're responsible for uplifting and democratizing poor countries.  That doesn't work because democracy and wealth require a certain amount of responsibility, forethought, and discipline.  If poor countries had those traits, they wouldn't be poor.  So we go in with our charitable humanism thinking they'd do better if only someone gave them a chance, it fails miserably, and we leave with nothing.

China, on the other hand, is capable of facing reality and takes responsibility only for itself.  It knows what these countries are like and structures deals accordingly.  First, they offer loans to poor countries to build infrastructure.  That's the legal and reasonable thing to do.  If the country behaves responsibly, all is well.  They gain wealth, and China gets a source of natural resources.  However, if the country mismanages those resources and defaults on their loans, China repossesses the infrastructure, imports its own people to run things, and takes payment in the form of natural resources.  It's Colonialism 2.0: if the host country remains poor, it's their own d*** fault.  China, which has its own problems to attend to, isn't going to impoverish itself babysitting the undisciplined. 

So the problem is not that African countries are unmanageable; it's that Westerners are too weak-willed to face reality.  We could learn a thing or two from China.

Edited by mthebold
  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

16 hours ago, RealusN said:

??  How does investing the US expose you more to US sanctions?

Investing in Africa is no risk??  Ha!  Talk about lack of infrastructure, constant threat of war, not enough educated workers, a high level of corruption, etc.

There are REASONS why the economies of Africa suck.

I was talking China’s growing use of “soft power” in Africa, especially educational and technological transfer initiatives. China has committed billions of dollars in development finance for Africa over the past decade as Beijing seeks to secure its political and economic clout on the continent. 

Share this post


Link to post
Share on other sites

1 hour ago, 李伟王芳 said:

I was talking China’s growing use of “soft power” in Africa, especially educational and technological transfer initiatives. China has committed billions of dollars in development finance for Africa over the past decade as Beijing seeks to secure its political and economic clout on the continent. 

China is a predatory lender bent on saddling Africa with debt to gain political influence and a reliable source of natural resources and precious metals. Just ask France, Belgium, Netherlands...

  • Like 1

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0