Many of the largest corporations in the world are now investing in China. They have realized that China is the economic powerhouse of the east and they want a major part of the Chinese pie. Some of these large multinational corporations have already made most of their billions by investing in China and building mega-skyscrapers and hotels. American Companies have been investing in China for decades. Since the economy has boomed and is now catching up to the US economy, it would be wise for the US to follow suit and invest in China.
There are two main reasons that the US should invest in China. First, the economies of both countries are extremely intertwined. Because of this; both countries rely heavily on the other for their very existence. This ties both countries together and without US investment in China the countries would be struggling.
Secondly, the US has a huge surplus with China and because of the currency manipulation and the illegal free trade and unfair trade practices the US has given the country, China will buy our products at a cheaper price and sell to us at a cheaper price. This would put the American economy right back in a stronger position than ever before. By being a cheaper consumer the world would support more American goods and services as China becomes the new manufacturing capital of the world.
Why is the US allowing foreign companies to invest in China? Many foreign companies fear that they will lose a lot of money investing in China due to the rampant pollution and that the Chinese government will take away their profits or use them for their own projects. While there are rumors of this occurring, there is no proof that they are true. So, why is the US allowing foreign companies to invest in China?
The US wants to continue to be a big player in the world economy and wants to continue to grow their economy. In order to do this, we must allow American companies to invest in other countries. However, with so many companies leaving the United States and going to other countries to compete, it would be difficult to keep up with the others. If all companies left the United States, our economy would be badly damaged. Therefore, by allowing these companies to invest in other countries we are helping our economy to stay on track.
The third reason is because of political reasons. Many European countries and even Japan would have a difficult time with trying to compete with us, but they have strong nationalistic feelings and they like to promote their culture. They also want to make sure that the United States maintains a strong military presence. China does not have these same feelings and they also want to ensure that their citizens are well-educated so that their market share grows. These are all good reasons to allow investment from these countries. China is one of the best countries to invest in and it would be a shame if we did not allow them to be a big part of the global economy.