FDI: China overtakes ‘free market’ America

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The volume of Foreign Direct Investment has been the litmus test for the buoyancy of an economy in liberalised markets in modern times. The clean bill of health given to a country from the world’s ...

The volume of Foreign Direct Investment has been the litmus test for the buoyancy of an economy in liberalised markets in modern times. The clean bill of health given to a country from the world’s super investors as the safest haven for high returns on investments, the opinion poll of all opinion polls on global confidence in a country’s economy.

China begs to differ on the role of the state in securing an inclusive growth. It concedes a significant place for the market in mobilising wealth, but insists on the state playing a pivotal role in steering the capitalist bulldog away from disasters often of its own making. In a “command” economy, therefore, “collective good” is prioritised over and above individual “rights”.

So, why on earth are foreign investors falling over themselves to invest in the Chinese “command” economy, the antithesis of liberal economic doctrine? It is so counterintuitive, and a strange oxymoron, but one that makes perfect logic. Business , market, wants nothing more than stability and predictability, both of which China is able to offer investors in abundance. Capital has no moral conscience.

 

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Since. That's why USA is fighting tooth and nail to bring China 🇨🇳 down

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