Buying Large Employers Will Enable China To Dominate 1000s Of
U.S. Communities
June
8, 2013
By
Michael Snyder, Guest Post
Are you ready for a future where China will
employ millions of American workers and dominate thousands of small communities
all over the United States? Such a future would be unimaginable to many
Americans, but the truth is that it is already starting to happen. Chinese
acquisition of U.S. businesses set a new all-time record last year, and it is
on pace to absolutely shatter that record this year. Meanwhile, China is
voraciously gobbling up real estate and is establishing economic beachheads all
over America. If China continues to build economic power inside the United
States, it will eventually become the dominant economic force in thousands of
small communities all over the nation.
Just think about what the Smithfield Foods
acquisition alone will mean. Smithfield Foods is the largest pork producer and
processor in the world. It has facilities in 26 U.S. states and it employs tens
of thousands of Americans. It directly owns 460 farms and has contracts with
approximately 2,100 others. But now a Chinese company has bought it for $4.7
billion, and that means that the Chinese will now be the most important
employer in dozens of rural communities all over America.
If you don’t think that this is important,
you haven’t been paying much attention to what has been going on in the world.
Thanks in part to our massively bloated trade deficit with China, the Chinese
have trillions of dollars to spend. They are only just starting to exercise
their economic muscles.
And it is important to keep in mind that
there is often not much of a difference between “the Chinese government” and
“Chinese corporations”. In 2011, 43 percentof all profits in China were
produced by companies that the Chinese government had a controlling interest
in. Americans are accustomed to thinking of “government” and “business” as
being separate things, but in China they are often one and the same. Even when
there is a separation in ownership, the reality is that no major Chinese
corporation is going to go against the authority and guidance of the Chinese
government. The relationship between government and business in China is much
different than it is in the United States.
Over the past several years, Chinese
companies have become increasingly aggressive. Last year a Chinese company
spent $2.6 billion to purchase AMC entertainment – one of the largest movie
theater chains in the United States. Now that Chinese company controls
more movie ticket sales than anyone else in the world. At the time, that was
the largest acquisition of a U.S. firm by a Chinese company, but now the
Smithfield Foods deal has greatly surpassed that.
But China is not just relying on acquisitions
to expand its economic power. The truth is that “economic beachheads” are being
established all over America. For example, Golden Dragon Precise Copper Tube
Group, Inc. recently broke ground on a $100 million plant in Thomasville,
Alabama. I am sure that many of the residents of Thomasville, Alabama will be
glad to have jobs, but it will also become yet another community that will now
be heavily dependent on communist China.
And guess where else Chinese companies are
putting down roots?
Detroit.
Yes, the poster child for the
deindustrialization of America is being invaded by the Chinese. The following
comes from a recent CNBC article…
Dozens of companies from China are putting
down roots in Detroit, part of the country’s steady push into the American auto
industry.
Chinese-owned companies are investing in
American businesses and new vehicle technology, selling everything from seat
belts to shock absorbers in retail stores, and hiring experienced engineers and
designers in an effort to soak up the talent and expertise of domestic
automakers and their suppliers.
If you recently purchased an “American-made
vehicle”, there is a really good chance that it has Chinese parts in it.
In fact, it is becoming harder and harder to
get auto parts that are actually made in America by American companies. A lot
of those companies are dying off. One example of this is a battery maker that
had received $132 million from the federal government that was recently gobbled
up by a huge Chinese corporation…
Industry analysts are hard-pressed to put a
number on the Chinese suppliers operating in the United States. “We simply
don’t know how many there are,” said David Andrea, an official with the
Original Equipment Suppliers Association, a trade organization for auto parts
makers.
In one of the more prominent deals, the
Wanxiang Group bought most of the assets of the battery maker A123 Systems,
which filed for bankruptcy last year despite receiving $132 million of $249
million in federal grants to build two factories in Michigan.
Congressional Republicans criticized the
deal, saying A123′s technology could support military applications in China.
Still, the buyout was approved this year by the Committee on Foreign Investment
in the United States, a federal government panel.
China seems particularly interested in
acquiring energy resources in the United States. For example, did you know that
China is actually mining for coal in the mountains of Tennessee?
Guizhou Gouchuang Energy Holdings Group spent
616 million dollars to acquire Triple H Coal Co. in Jacksboro, Tennessee. At
the time, that acquisition really didn’t make much news, but now a group of
conservatives in Tennessee is trying to stop the Chinese from blowing up their
mountains and taking their coal. The following is from a Wall Street Journal
article back in March…
The Tennessee Conservative Union began airing
an ad Tuesday that says lawmakers have failed to protect the state’s scenic
mountains and are allowing the “Chinese to destroy our mountains and take our
coal…the same folks who hold our debt.”
But when it comes to our energy resources,
China has been most interested in our oil and natural gas. It is a complete and
total mystery why the federal government would allow China to buy up our
precious domestic sources of energy, but it is happening. The following is a
list of some of the oil and natural gas deals that China has been involved in
during the last few years that was compiled by the Wall Street Journal…
Colorado: Cnooc gained a one-third
stake in 800,000 acres in northeast Colorado and southeast Wyoming in a $1.27
billion pact with Chesapeake Energy Corp.
Louisiana: Sinopec has a one-third
interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5-billion
deal with Devon Energy.
Michigan: Sinopec gained a one-third
interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.
Ohio: Sinopec acquired a one-third
stake in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion
deal.
Oklahoma: Sinopec has a one-third
interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.
Texas: Cnooc acquired a one-third interest in Chesapeake Energy’s
600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.
Wyoming: Cnooc has a one-third stake
in 800,000 acres in northeast Colorado and southeast Wyoming after a $1.27
billion pact with Chesapeake Energy. Sinopec gained a one-third interest in
Devon Energy’s 320,000 acres as part of a larger $2.5 billion deal.
Gulf of Mexico: Cnooc Ltd. separately
acquired minority stakes in some of Statoil ASA’s leases as well as six of
Nexen Inc.’s deep-water wells.
How could we be so stupid?
Sadly, as our politicians endlessly bicker
China just continues to aggressively push ahead.
And pretty soon China may want to build
entire cities in the United States just like they have been doing in other
countries. According toBloomberg, right now China is actually building a city
larger than Manhattan just outside of the capital of Belarus…
China is building an entire city in the
forests near the Belarusian capital Minsk to create a manufacturing springboard
between the European Union andRussia.
Belarusian President Aleksandr
Lukashenkoallotted an area 40 percent larger than Manhattanaround Minsk’s
international airport for the $5 billion development, which will include enough
housing to accommodate 155,000 people, according to Chinese and Belarusian
officials.
And this is actually already happening on a
much smaller scale in this country. For example, as I have written about
previously, a Chinese company known as “Sino-Michigan Properties LLC” has
purchased 200 acres of land near the little town of Milan, Michigan. Their
stated goal is to construct a “China City” that has artificial lakes, a Chinese
cultural center and hundreds of housing units for Chinese citizens.
In other cases, large chunks of real estate
in the middle of major U.S. cities are being gobbled up by Chinese “investors”.
Just check out what a Fortune article from a while back says has been happening
in Toledo, Ohio…
In March 2011, Chinese investors paid $2.15
million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon
they put down another $3.8 million on 69 acres of newly decontaminated land in
the city’s Marina District, promising to invest $200 million in a new
residential-commercial development. That September, another Chinese firm spent
$3 million for an aging hotel across a nearby bridge with a view of the minor
league ballpark.
Are you starting to get the picture?
China is on the rise and America is in
decline. If you doubt this, just read the following list of facts which comes
from one of my previous articles entitled “40 Ways That China Is Beating
America“…
#1
As I
mentioned above, when you total up all imports and exports of goods, China is
now the number one trading nation on the entire planet.
#2
During
2012, we sold about 110 billion dollars worth of stuff to the Chinese, but they
sold about 425 billion dollars worth of stuff to us. That was the largest trade
deficit that one nation has had with another nation in the history of the
world.
#3
Overall,
the U.S. has run a trade deficit with China over the past decade that comes to
more than 2.3 trillion dollars.
#4
China now
has the largest new car market in the entire world.
#5
China has
more foreign currency reserves than anyone else on the planet.
#6
China is
the number one gold producer in the world.
#7
China is
also the number one gold importer in the world.
#8
The
uniforms for the U.S. Olympic team were made in China.
#9
85 percent
of all artificial Christmas trees are made in China.
#10
The new
World Trade Center tower is going to include glass that has been imported from
China.
#11
The new
Martin Luther King memorial on the National Mall was made in China.
#12
One of the
reasons it is so hard to export stuff to China is because of their tariffs. According
to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United
States costs about $85,000 in China thanks to all the tariffs.
#13
The Chinese
economy has grown 7 times faster than the U.S. economy has over the past
decade.
#14
The United
States has lost a staggering 32 percent of its manufacturing jobs since the
year 2000.
#15
The United
States has lost an average of 50,000 manufacturing jobs per month since China
joined the World Trade Organization in 2001.
#16
Overall,
the United States has lost a total of more than 56,000manufacturing facilities
since 2001.
#17
According
to the Economic Policy Institute, America is losing half a million jobs to
China every single year.
#18
China now
produces more than twice as many automobiles as the United States does.
#19
Since the
auto industry bailout, approximately 70 percent of all GM vehicles have been
built outside the United States.
#20
After being
bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint
ventures with companies owned by the Chinese government. The price for entering
into many of these “joint ventures” was a transfer of “state of the art
technology” from General Motors to the communist Chinese.
#21
Back in
1998, the United States had 25 percent of the world’s high-tech export market
and China had just 10 percent. Ten years later, the United States had less than
15 percent and China’s share had soared to 20 percent.
#22
The United
States has lost more than a quarter of all of its high-tech manufacturing jobs
over the past ten years.
#23
China’s
number one export to the U.S. is computer equipment, but the number one U.S.
export to China is “scrap and trash”.
#24
The U.S.
trade deficit with China is now more than 30 times larger than it was back in
1990.
#25
China now
consumes more energy than the United States does.
#26
China is
now the leading manufacturer of goods in the entire world.
#27
China uses
more cement than the rest of the world combined.
#28
China is
now the number one producer of wind and solar power on the entire globe.
#29
There are
more pigs in China than in the next 43 pork producing nations combined.
#30
Today,
China produces nearly twice as much beer as the United States does.
#31
Right now,
China is producing more than three times as much coal as the United States
does.
#33
China now
produces 11 times as much steel as the United States does.
#34
China
produces more than 90 percent of the global supply of rare earth elements.
#35
China is
now the number one supplier of components that are critical to the operation of
U.S. defense systems.
#36
A recent
investigation by the U.S. Senate Committee on Armed Services found more than
one million counterfeit Chinese parts in the Department of Defense supply
chain.
#37
15 years
ago, China was 14th in the world in published scientific research articles. But
now, China is expected to pass the United States and become number one very
shortly.
#38
China now
awards more doctoral degrees in engineering each year than the United States
does.
#39
The average
household debt load in the United States is 136% of average household income.
In China, the average household debt loadis 17% of average household income.
#40
The Chinese
have begun to buy up huge amounts of U.S. real estate. In fact, Chinese
citizens purchased one out of every ten homes that were sold in the state of
California in 2011.
And what we have seen so far may just be the
tip of the iceberg as far as Chinese “investment” in U.S. real estate is
concerned. The following is a brief excerpt from a Bloomberg article that was
posted just last week…
China is studying the possibility of
investing a portion of its $3.4 trillion in foreign-exchange reserves in U.S.
real estate, said two people with direct knowledge of the situation.
The
State Administration of Foreign Exchange began the study after seeing signs of
a recovery in the U.S. property market, said the people, who asked not to be
identified as they weren’t authorized to speak publicly about the matter. China
may acquire properties, invest in real estate funds or buy stakes in property
companies, they said. The safety of the investments will be the top priority,
said the people, who didn’t elaborate on a timetable or other details.
So what
can we do about all of this?
Unfortunately, not a whole lot. Both major
political parties seem to be fully convinced that merging our economy with the
economy of communist China is a great idea. I would not expect major changes in
our policies regarding China any time soon.
For
now, I will just leave you with one piece of advice …
Learn
to speak Chinese. You might need it someday.
(Source:
http://blacklistednews.com/?news_id=26527&print=1)