China buys what everyone is selling: Europe
China is unleashing its billions of buying power on the deteriorating economy of Greece.
China's central bank governor Zhou Xiaochuan (C) smiles after taking a group photograph at the G20 Finance Ministers and Central Bank Governors meeting in Busan on June 4. Finance ministers and central bankers from the Group of 20 gathered in South Korea to grapple with Europe's debt crisis, financial reforms and efforts to rebalance the global economy. China is buying much of Greece's debt.
Jo Yong-Hak/Reuters
"We have a saying in China, 'Construct the eagle's nest, and the eagle himself will come.' We have constructed such a nest in your country to attract such Chinese eagles. This is our contribution to you."
- "Captain" Wei Jiafu, Chinese CEO investing $700 million in Greece's ports.
I love these kooky Chinese Captains of Industry. They're such a throwback to the Age of the Industrialists. And they're not playing games. Buying up every tract of arable farmland in Africa, cutting oil deals with Chavez, Ahmadinejad and Hitler's corpse if need be, etc.
This morning's news is that China is unleashing their billions of buying power on the deteriorating economy of Greece. The state-run casinos, ports and transportation assets will be revamped as cities like Piraeus become revitalized shipping hubs so that Chinese goods can flood into Europe.
From the Washington Post:
Spurred on by government incentives and bargain-basement prices, the Chinese are planning to pump hundreds of millions -- perhaps billions -- of euros into Greece even as other investors run the other way. The cornerstone of those plans is the transformation of the Mediterranean port of Piraeus into the Rotterdam of the south, creating a modern gateway linking Chinese factories with consumers across Europe and North Africa.
Given the rational temperament of the proverbial Man on the Street in Athens, they'll probably protest it, but if they're smart, they'll embrace the investment and make the best of a bad situation.
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