China News Services (CNS) (Chinese Opinions) via European Times reports: under the virulent impact of the global pandemic, a downward spiral has been leading the way of the worldwide economy. Amid such external and internal challenges, the Chinese government continued to carry forward amicable policies towards foreign investments to boost confidence for the recovery of a thorny global economy.
According to data gathered by the Rhodium Group, there has been an ongoing increment in the number of foreign investments in China since mid-2018. Throughout the entire year of 2019, foreign investments accrued to an all-time high compared to the past decade, with a total amount of 35 billion in U.S.D. Just within the first five months of this year, external investments from abroad have achieved another 9 billion U.S Dollars through additional Mergers and Acquisitions (commonly referred to as M&A) businesses in China. It was the first time that the Chinese companies’ M&A business in China surpassed their oversea M&A business in the same period in the past 10 years. The report also claimed that: with such a steady contribution to the capital increase of the global economy, China should be able to uphold its strong lead in the acquisitions of Chinese assets.
Rhodium Group attributed this high enthusiasm that foreign capital has in the Mergers and Acquisitions in China to three main contributing factors: the great demands of the Chinese consumer market, the foreign-friendly policies established by the CCP, and the great opportunities presented by a gradually matured capital environment.
Since the publishing of the article, there have been multitudes of democratic voices swarming in, questioning the authenticity and the unbiasedness of the published article. As we are all familiar with, any news media that could publish under the eyelids of CCP is highly controlled and censored by the Chinese government. In the same manner, any foreign-located Chinese news media must be approved first by the CCP to establish their “legitimacy” to publish outside of the state or to collaborate with foreign media outlets. In the grand scheme of the world economy, it would be impossible to divert our attention from the aggravated tension between China and the rest of the world at this point in our history. It is within public knowledge that one of the most alluring reasons for the western world to step their feet in China since decades ago was due to the extremely low costs of Chinese manufacturing labor. With the current standing where CCP is actively denying responsibility for the virus while imposing heavy tariffs on foreign business, the relationship could not have been more susceptible to completely dissolving. The propaganda machine that CCP is so accustomed to using seems insufficient to cover its skeletons in the closet at the time anymore.