Do you allow Chinese capitalism?
• World is in a recovery stage after a recession. In the last quarter of 2010 Ireland asked for a bail out to come out of its financial crisis. (Refer New York Times). In an environment like this foreign direct investments (FDI) plays a significant role. Though Control of world’s stock of FDIs still lies with USA China invests aggressively in this segment. This trend is supporting world economy to run the business in troublesome times.
• When China is acquiring foreign companies China must adopt to its operations in order to execute the acquisition smoothly. Geely Chairman Li Shufu said with unintentional humor that, “I see Volvo as a tiger. It belongs to the forest and shouldn’t be contained in the zoo,” Li said in Mandarin. “The heart of the tiger is in Sweden and Belgium.” (Refer Geely buys Volvo).
• China’s investments in the world will result in more harmony among legislation in countries around the world. Since when China has investments in several countries, China has to compare the results after taking all the investments in to a common platform. This will create a favorable environment for global investments from other countries as well.
• Huge reserves held in China can be used to develop the world as a whole. The danger that cheap Chinese capital might undermine rivals can be better dealt with by beefing up competition law than by keeping investment out. China has rigorous competition laws in place to protect the consumers from monopolies that may arise out of lack of competition (Refer Chinese competition Laws)
• China has a keen interest in green energy sector. This is a very positive trend in a time of global warming since we need to look for alternative energy sources other than oil. China is advancing in wind energy surpassing America in 2010. When China can access favorable locations all over the world with its technology, world can add more green power (i.e. without green house emissions) in to the world grid of power.


