Thursday, November 4, 2010

France - Just Another Indentured Servant in the Making

On the wire (BBC News - abridged):

China's President Hu Jintao has signed billions of euros' worth of business deals during a state visit to France.
They included spending 10bn euros (£8.6bn; $14bn) on 102 Airbus planes, as well as telecoms and nuclear deals.

On Thursday evening, deputy Chinese Foreign Minister Fu Ying said investment contracts signed that day had already totalled 14bn euros, and said China planned to double the value of its annual imports from France to 56bn euros over the next five years.
The deals apparently included a 2.5bn-euro agreement with French nuclear giant Areva to supply uranium, and another to build a uranium treatment plant in China.
Also, Total said it was planning to invest 2-3bn euros in a Chinese petrochemical plant.
 Mr Hu said in a statement: "China and France share broad common interests and huge potential for co-operation."
From France, Mr Hu will travel on to Portugal on Saturday (see earlier post).

The dependence on Chinese capital is spreading rapidly in the West - no longer is the US the only one feeding at the Chinese trough.  They are not the next economic superpower - they are the current economic superpower.

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About Me

A student of the markets that has held portfolio management, analysis and trading positions for over 15 years.