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China is Buying America, Pt. 2
Everbright Development. Think it's American? Thank again. It is a Chinese investment firm that was part of a bidding war to buy the over 100 years old reknowned clothing department store chain, Gottschalks. Based in California, the chain employs over 5000 in its 58 stores across the West. Like many retail stores, the economy has hit hard and forced many to file for bankruptcy. These are major store chains closing down, not small mom and pop stores.
In my previous hubpage post, China is Buying America, you know that China has the US by its economic throat by holding America's debt in their hand through treasury notes and bonds. If it were not for China, America's position as some economists have noted, would be dire.
You may not give a hoot about this. Life goes on. But with huge investment companies with American sounding names that are really Chinese now buying many of America's retail store chains, you should be. Right now, the Chinese Shandong Commerical Group owned by the Chinese govenment is the only one that can save Gottschalks. The other bidders trying to obtain it would simply liquidate their assets and over 5000 would be unemployed. Everbright was willing to spend $30 million to save it and own it.
The question to worry about is why is China doing this? If America and China part ways in the future, there is one answer: China would play its economic warfare card, sell it all, demand payment of their loans, forcing the economy to nosedive. Now, add this card with some sort of military confrontation that escalates rapidly and spins out of control and the combination of the two would be crippling, not just for the US, but the World.
It is not as remote as it sounds. China has already hinted that it was concerned about America and how it is handling the economy, i.e., their investments. The political power China has is real, but many in America are in denial about it. China can dictate how America might act in certain situations since they own our debt in the trillions.
Of course, many say that China's greatest consumer market is the USA. So, they would never be so cruel. People- they remain a communist country with islands of freedom zones so they can achieve economic strength. This allows them to devote a lot of resources to their military, which is the fastest growing in the world. If they reach some goal and start to use that military and economic strength, the World is in danger. The Chinese and the West have only been buddies since the mid 80s, prior to that, it was the opposite.
If you think the Chinese government does not have a plan, a motive that is not benign, then, it is wishful thinking. Once they reach whatever economic goal they have, that is when their real motives will become apparent. They are no longer the Great Sleeping Dragon.