Coronavirus Recession: May China Purchase the US?

published on July 2, 2020

the coronavirus shutdown has hurt

businesses around the world and they

could be looking to China for

investments this would not be good

[Music]

welcome back to China uncensored I'm

Chris Chappell

the CCP virus has spread across the

globe infecting millions of people and

in response a lot of governments have

shut down non-essential businesses this

has put a huge number of Western

companies in or close to bankruptcy but

don't worry

there could be an easy solution to this

crisis that started in China money from

China the Chinese Communist Party may

try to use this economic downturn to buy

up American and European companies at

bargain-basement prices because when

you're drowning

you'll let anyone help you including the

guy who threw you in the water in the

first place

a few weeks ago a Chinese state backed

investment firm called China reform

holdings tried to take control of a

British graphics chip maker called

imagination technologies the deal would

have gone through except the UK

government stepped in at the last minute

to block it on national security

concerns of course China reform holdings

still provides a third of the funding to

Canyon bridge the private equity firm

that owns imagination technologies so

it's not over but it highlights a larger

problem companies in the West are

vulnerable to hostile Chinese investment

now more than ever in 2019 Chinese

entities invested nearly 13 billion

dollars in European Union countries in

2018

Chinese entities invested about 25

billion dollars in the United States a

lot of it was in the tech industry and

this is not just random Chinese

companies investing in whatever they

think will be profitable it's part of

the Chinese

party's unified plan to acquire foreign

technology back in 2015 the Chinese

government announced a plan called made

in China 2025 the goal was to become the

world's leading manufacturer in 10

high-tech sectors those include things

like information technology like what

the UK's imagination technologies does

as well as biopharmaceuticals like

making drugs and medical devices now

first Chinese state-run media heavily

promoted made in China 2025 with tons of

articles and creepy cartoons what is

happening there is the world trying to

run away where is it going it's very

unclear anyway some people in the West

saw made in China 2025 as a security

threat this report says it aims to

systematically acquire cutting-edge

technology and generate large-scale

technology transfer in the long term

China wants to obtain control over the

most profitable segments of global

supply chains and production networks

some Western governments especially the

Trump administration started to publicly

express concern about it so the Chinese

government dropped it but they didn't

actually drop their plan they just

dropped the name made in China 2025 the

policy remains and now we're halfway to

2025 and we've seen the impact of this

plan that shall no longer be named we've

especially noticed it recently with

China now being the world's major

producer of ventilators and respirators

that have been in such short supply the

key danger now is that with US companies

feeling the crunch they're more likely

to turn to any investor for money even

investors with ties to the Chinese

Communist Party this report from the

rhodium group on March 30th says that

some Chinese firms are

to take advantage of the sharp drop in

global company valuations it makes sense

because after the 2008 oh nine crisis

Chinese firms ventured out to acquire

discounted assets around the globe

especially those with strategic utility

the good news is some governments are

more aware this time fool me once shame

on shame on you

if Bhoomi can't get fooled again it

seems the Trump administration has

adhered to those words of wisdom in the

United States the government has woken

up to the national security implications

of losing sensitive capabilities to

China the Committee on foreign

investment in the United States sophia's

now plays a very active role in

screening potential takeovers on

national security grounds but despite

that a lot of Chinese investment in the

US has continued as Chinese investors

shifted some of their venture

investments to industries and

technologies that aren't drawing as much

scrutiny and the European Union doesn't

even have an equivalent of sophia's each

country is left to fend for itself and

many of those countries have been stupid

Italy Greece Portugal I'm gonna stop

there or else this episode will get too

long but I do also have to mention how

many European countries are still

willing to have Chinese state connected

company Huawei run their 5g networks

despite us warnings over security

concerns but more investment from

Chinese companies means more control by

the Chinese state remember every major

Chinese firm has a Chinese Communist

Party secretary and if a Chinese company

has made it really big that's because it

had lots of connections with the party

along the way there's no such thing as a

completely private Chinese company and

that's why Western governments would be

smart to keep a closer eye on Chinese

investment during this crisis and figure

out a way to help their own domestic

companies without relying on China and

now I'll answer a question from a fan

who supports China uncensored on patreon

Charlie Matsubara asks what do you think

about the proposed Chinese digital

currency will it really pose a threat to

dollar

supremacy wow that's a good question

charlie probably merits its own episode

but the short answer is China's digital

currency would allow the Communist Party

to have total control over the money

they already have a lot of control now

since most transactions are being done

through Ali pay and WeChat day but a

true digital currency would make it

absolute the CCP could easily monitor

all transactions and credit or remove

money from anyone's account at any time

speak out against the CCP's coronavirus

cover-up

now all your money is gone but precisely

for that reason a digital Chinese

currency may pose less of a threat to

the US dollar if foreign companies are

concerned about security they better not

use digital Chinese un then again

European countries still want to use

Huawei despite the security concerns so

who knows thanks for your question

charlie and thank you for watching over

the past two months a lot of you have

stepped up and joined our China

uncensored 50-cent army by contributing

a dollar or more per episode through the

crowdfunding website patreon this is

making a huge difference for us as we

get through this difficult time with

YouTube de monetizing a lot of our

content about controversial topics like

the corona virus which is pretty much

all we've been covering for the past

couple of months so thank you for your

support once again I'm Chris Chappell

see you next time

[Music]

[Music]

Related Videos

ORDERING A CHINESE CONSULATE HERE TO CLOSE OVER SPYING CONSULATE HERE TO CLOSE OVER SPYING CHARGES. CLOSE OVER SPYING CHARGES. ANDREA MITCHELL HAS CHARGES. ANDR...
March and April we saw a really like big decline on our business and our sales but starting on May and June it gets better people are coming back to restaurant...
you're listening to a podcast from the south china morning post i view them as a friend i have tremendous respect for president xi nobody in this world an...
I think the significance of this result is not merely a process for Hong Kong for the Democratic camp to select their candidates to run in the official electio...
Barely two weeks after social distancing measures were eased the coronavirus that caused covet 19 has returned to hong kong with a vengeance the city is now bat...
These images of a mob indiscriminatelyattacking protesters journalists andcivilians in your long last July markeda turning point in the Hong Kongdemonstrations ...
To China now where some of the 300lawyers and activists arrested in 20th2015 crackdown on human rightssupporters are being released they hadpushed back against ...
Be the first to comment “Coronavirus Recession: May China Purchase the US?”

Your email address will not be published.

There are no comments yet.