05-21-2012, 03:59 PM
The announcement that ICBC was granted holding company status in the Hong-Kong owned BEA branches in New York came shortly after the 4th round of Strategic and Economic Dialogues (S&EA) in Beijing at the beginning of May. I don't think that it's a coincidence. Obama, Hillary Clinton and Treasury Secretary Timothy Geithner have been extremely dedicated to increased partnerships with China over the last four years.
China is the largest exporter in the world and the US is the largest importer. Both economies are facing different types of challenges that each seek to overcome through increased trust and cooperation between the countries. We want them to step back some on their import restrictions so that we can gain greater access to the largest consumer base in the world and strengthen our domestic economy through exports to China. They want us to step back on some of our restrictions regarding foreign investment and technology limits so that they can diversify and globalize their economic interests. The S&ED is reported by both sides to be successful and fruitful for the US and China.
Today I read that read that Chinese entertainment company Wanda has purchased AMC theaters for $2.6 billion, making it the largest cinema chain owner in the world. Just prior, the US had negotiated with China to increase the number of new US releases to the Chinese market and double the cut that the US can take from Chinese box offices to 25%.
Tit for tat imo, and we will be seing it across other industries aside from banking services and entertainment, imo. Overall, I think these exchanges are beneficial for the US (short and long term) considering the still largely untapped Chinese export market with 1.3 billion potential consumers (20% of the world's population). But, just like with treaties and pacts, the US has to be careful in defining terms, penalties and monitoring protocols when entering into new agreements with China (most especially in financial and technology sectors, imo).
All JMO.
Background/Reference links:
S&ED charter from US Secretary of State
http://www.state.gov/r/pa/prs/ps/2012/05/189286.htm
AMC Purchase announcement - CNN:
http://edition.cnn.com/2012/05/21/busine...index.html
Beijing Review (Eng) synopsis of S&ED 4th Round:
http://www.bjreview.com/print/txt/2012-0...452250.htm
China is the largest exporter in the world and the US is the largest importer. Both economies are facing different types of challenges that each seek to overcome through increased trust and cooperation between the countries. We want them to step back some on their import restrictions so that we can gain greater access to the largest consumer base in the world and strengthen our domestic economy through exports to China. They want us to step back on some of our restrictions regarding foreign investment and technology limits so that they can diversify and globalize their economic interests. The S&ED is reported by both sides to be successful and fruitful for the US and China.
Today I read that read that Chinese entertainment company Wanda has purchased AMC theaters for $2.6 billion, making it the largest cinema chain owner in the world. Just prior, the US had negotiated with China to increase the number of new US releases to the Chinese market and double the cut that the US can take from Chinese box offices to 25%.
Tit for tat imo, and we will be seing it across other industries aside from banking services and entertainment, imo. Overall, I think these exchanges are beneficial for the US (short and long term) considering the still largely untapped Chinese export market with 1.3 billion potential consumers (20% of the world's population). But, just like with treaties and pacts, the US has to be careful in defining terms, penalties and monitoring protocols when entering into new agreements with China (most especially in financial and technology sectors, imo).
All JMO.
Background/Reference links:
S&ED charter from US Secretary of State
http://www.state.gov/r/pa/prs/ps/2012/05/189286.htm
AMC Purchase announcement - CNN:
http://edition.cnn.com/2012/05/21/busine...index.html
Beijing Review (Eng) synopsis of S&ED 4th Round:
http://www.bjreview.com/print/txt/2012-0...452250.htm