When Times Are Tough, a Chinese Friend Steps In

First there was Abu Dhabi sovereign fund buying into Citi (C) and Tuesday news broke that China is investing $5 billion in Morgan Stanley (MS). China's sovereign wealth fund will be purchasing approximately 9.9% of the Wall Street mainstay. All of this on top of an announcement of Morgan's latest write down of another $9 billion. Two years ago China attempted to purchase Unocal and thank GD due to strong opposition by the government this sale was negated. So my simple question is: Why is it now permissible to purchase the financial backbone of the U.S. and actually much of the Western World. UBS (UBS) also received a cash infusion recently from Middle East sources.

Who can really think we are not in a crisis if situations like these mentioned above are permitted to occur? All in all Blackstone (BX), Standard Bank, Barclays (BCS) and even Fortis (FORSY) have sold stakes to China. What about all the investors buying China? Actually for the first time in history there is more of an outflow of sovereign Chinese government investments than inflows. Is one to believe that the Communist Chinese, our enemies in the Korean War and supporters of North Korea, have become true capitalists?

Comments

[vickyLee]

I come from China.
I think your words have some problem.
"Communist Chinese" also want to make money, and we don't want to hurt any other country.
Investing is just investing, it's not about politics and ideology.

[leareg]

Investing for the sake of inveting is NOT true. When an entity invests the amounts that have been stated in this article- the object is 'power'! Please don't think everyone in America believes in a gracious China just wanting to be 'helping friends' to America. There is a strange transfer of power happening all around the world, and frankly, it scares me!

[jimmyb]

This is not necessarily bad. Economic interdependence greatly reduces the risk of a cold or hot war.

[vickyLee]

Although we Do not intend to "help friends" in th U.S., we also don't want to make American feel worse.
It is just about making money.

[Kunst]

You can't give China and the oil exporters all those dollars and then tell them what they can spend them on. A trillion will buy more trips to Disneyland than anyone can stand.

[fathermalcolm]

Mr. Abraham, I agree with your assessment. I live in China, and I can assure you, you are correct. I would posit this: it is not that the Chinese are more "like" us, but that the USA is now, considerably MORE like China than most realize or will accept.
And as to the other's comments- it is a sad reflection how many americans are so quick to sell their offsprings future for a bowl of beans! Wasn't it Nixon who said, "the ends justify the means"?

Stand strong Mr. Abraham!

[SniperWZ]

Hhahaha, this mirrors the same comments from the typical Chinese xenophobe who complains about American cultural influences creeping in China, how American capital and business are buying up Chinese assets and how the Chinese people are losing their culture and becoming more like uncouth Americans...hilarious!...