The Wall Street Journal: Chinese money is fleeing from the West towards Asia
The Wall Street Journal published a report that says, Chinese Money Escapes from the Western World, and stated that just a few years ago; Chinese money was investing in the rich-Western world.
Chinese investors were making huge deals and snapping up souvenir assets, from luxury homes and five-star hotels in New York, to a Swiss chemical company and a German robotics giant, but today that era is over.
The Chinese investment is declining in the West, with the growing hostility to Chinese capital.
Now, increasingly, Chinese companies are pouring money into factories in Southeast Asia, mining, and energy projects in Asia, the Middle East, and Latin America, as Beijing seeks to strengthen alliances there and secure access to vital resources.
According to Wall Street Journal’s report, nickel-rich Indonesia is the largest recipient of Chinese investment so far this year, according to a preliminary estimate of Chinese investment compiled by the American Enterprise Institute, a conservative think tank.
Nickel is a key component in many batteries used to power electric vehicles.
This shift shows how China is responding to strained relations with the US-led West, and how it’s strengthening trade and investment ties with other parts of the world, in ways that could create new fault lines in the global economy.
According to the report, the decline of Chinese money in the West may reduce job creation in some countries, while reducing the pool of capital that entrepreneurs in places like Silicon Valley can tap.
On June 11, the Saudi Minister of Investment, Khaled al Falih, announced the launch of a new modern “Silk Road” between China and the Arab world, and the road works to connect the region with each other and its surroundings in Africa, Europe and Asia, led by China.
The Lowy Institute website in Sydney, Australia, previously published a report, which concluded that the United States has lost influence in favor of China in Southeast Asia over the past five years in four categories measured by the Asian Power Index: economic relations, defense networks, diplomatic influence, and cultural influence.
The Wall Street Journal had previously reported that the United States isn’t yet ready to deal with a new era of great power competition against China and Russia, pointing out that there are major obstacles in the way.
