Investment From China is good.

I felt the need to write this blog because I think it is important to see how China or Chinese investment aboard could be a factor in growth in these countries. The Financial Times reported a Chinese tycoon Huang Nubo's investment in Iceland is seen as a threat and strategic investment for China. It is easy to view this with conspiracy theories because in China, the government's involvement in the private sector is still very substantial. This Iceland deal involved the purchase of 300 Square kilometers of wilderness land by Huang Nubo for $9 million dollars. His vision is to built hotel and resorts there where the natural beauty could be admired by all. Indeed, the natural beauty was the reason why the 55 year old Chinese businessman who has a net worth of $890 million. The fact is that China itself is expanding globally and been investing in foreign countries. The jump from 2004's $15 billion to last year's $220 is plain staggering. With the economic downturn in the United States & Europe became more painfully clear, the fact that developing countries like China, India & South America opening their coffers to invest is almost a godsend. The fact that the investment comes with a promise of more employment and opportunities is not lost with countries suffering greatly with sharp cuts and reductions. This has historical precedence. The fear of the handover of Hong Kong back to China in the late 1980's to early 1990's led to a  boom time to countries like UK, Canada & Australia. Money that was made in Hong Kong after years of prosperous China related trade flowed into Canada & Australia through immigration and investment in properties and businesses. The second example was more well known to Americans, as the Japanese boom led to the "economic invasion" into the United States. The fact that the Japanese companies invested heavily into the US property market and manufacturing facilities led to an American boom too. People at that time fear that the Japan was going to take over America and the world, both now proven not to be true at all. My own believe is that if the Iceland government is so afraid of a Chinese takeover, they could put these into the terms of the sale. In that way, they could make sure that only the uses that would not delete the area's natural resources would be allowed. I think a healthy dose of suspicion when the size of this  investment is totally understandable, but it would be unwise let that blind us to current economic situation that is facing us. The fact that foreign tycoons are interested in investing in one's country is actually a good thing. When Hong Kong Tycoon KS Li successfully bid the usage if the two ports in the Panama Canal, the American interests cry foul and voiced concern that it would be China that would be controlling the canal from now on. Nothing was further from the truth, the two ports under Li's company Hutchison boomed. But Panama even today did not have regular official relationship with mainland China is a fact. So my conclusion is that one should not create fear and suspicion whenever foreign investment of a third world booming country occurs. In today's environment we should maybe welcome them with open arms.