China is about to hold a giant meeting on spending billions to reshape the world

 

China has rapidly climbed the ranks to become the world’s second-largest economy. Now, the most populous nation on the planet wants to increase its influence by digging further into its pockets — flush with cash after decades of rapid growth — to splash out with its “One Belt, One Road” policy.

The initiative is meant to connect Asia, Europe, the Middle East and Africa to bolster trade and development. This weekend, hordes of foreign diplomats and business leaders are expected to descend on Beijing for a two-day meeting about the policy.

Here’s what you need to know:

What is “One Belt, One Road?”

US and China: The Fight for Latin America

According to Robert Valencia, China is vying for greater economic influence in Latin America, to include possibly constructing and operating an alternative ‘Panama Canal’ through Nicaragua. One unanticipated consequence of this burgeoning US-China rivalry, Valencia observes, is that it might push Latin American countries closer together.

During the first weekend of June, U.S. President Barack Obama and Chinese President Xi Jinping met in California to discuss cyber espionage and territorial claims in the Pacific Rim. While tension on these topics has hogged the headlines, the fight for influence in another area could be even more important—Latin America. Other emerging markets in Africa, where China has an overwhelming influence due to foreign direct investment in mining and oil, also offer economic opportunities, but Latin America has an abundance of natural resources, greater purchasing power, and geographic proximity to the United States, which has long considered Latin America as its “backyard.”

What’s Mohammed Morsi Doing in China?

Egypt may be looking to sever ties with America and join the Iran-China axis.

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We know why Egypt’s president went to Iran.

The question is, why did he also visit China?

Morsi landed in Beijing on Tuesday, and was warmly welcomed by Chinese President Hu Jintao. For two days, the president and his 80-person entourage of Egyptian business leaders and politicians discussed investment projects with some 200 Chinese counterparts. (Yesterday, the Wall Street Journal reported that the China Development Bank had extended a $200 million line of credit to the National Bank of Egypt.) It’s important to note that this was Morsi’s first state visit outside the Middle East and Africa since he became president. Despite the way it appears, this was not a routine state visit.

China is the nation world leaders visit when they want to oppose or undermine America!

Perhaps this is over-simplifying it a little, but the supreme goal of China’s foreign policy, at least for now, is to oppose and undermine U.S. global power and influence. Be it China’s ongoing naval and military expansion, its regional spats over territorial acquisitions, its behavior in international organizations like the World Trade Organization, or its support of anti-American states like Venezuela and North Korea, Beijing exploits every opportunity to counter America. More than any other reason, this is why China remains a staunch ally of Iran.

The fact that Morsi chose to visit China indicates that Egypt may be looking to join this Iran-China axis!

Full article: What’s Mohammed Morsi Doing in China? (The Trumpet)

Chinese Target U.S. Homes

Lennar Corp., one of the U.S.’s largest home builders, is in talks with the China Development Bank for approximately $1.7 billion in capital to jump-start two long-delayed San Francisco projects that would transform two former naval bases into large-scale housing developments, according to people familiar with the discussions.

The negotiations aren’t final and the financing arrangement could still fall through. But if completed, the deal would reflect a changing dynamic between the U.S. and Chinese economies, as an American company turns to China for help funding a long-delayed and partially publicly funded project that otherwise wouldn’t get done.

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The CDB and the Lennar partnership have been in discussions to include China Railway Construction Corp., a state-run contractor, in the development of Treasure Island and Hunters Point, according to people familiar with the matter. While it is unclear what CRCC’s role would be, the company could serve as an adviser or in an consulting role, or could possibly even invest in a local construction company that employs U.S. workers, these people said.

With Chinese firms increasingly eyeing opportunities in the U.S. and other developed markets, CDB will likely find itself being approached to fund more deals in the U.S. People familiar with the negotiations said CDB was using the Treasure Island and Hunters Point projects—which both include “green” building and affordable housing components that are of interest to Chinese builders—as a test case to become familiar with what’s required for doing such deals in the U.S.

Full article: Chinese Target U.S. Homes (Wall Street Journal)