China Protects Banks
In another example of the "free market" in China, the government has announced that it will require foreign banks that bought stakes in Chinese banks to hold the shares for at least three years.
This is not all; the PRC has restricted foreign investment in each bank to 25%, with any single investor limited to a stake of 20%. In addition, China defined a foreign strategic investor as one that buys a stake of more than 5%, and has required these investors to transfer management and technology expertise in exchange for permission to be a board member.
China has said it is doing this to protect its banking industry from foreign banks that have competitive advantages. I say that the US should do the same thing with our steel, manufacturing, and electronics industry. Since just like China we don't want foreign companies to get control and hurt our economy.
This is not all; the PRC has restricted foreign investment in each bank to 25%, with any single investor limited to a stake of 20%. In addition, China defined a foreign strategic investor as one that buys a stake of more than 5%, and has required these investors to transfer management and technology expertise in exchange for permission to be a board member.
China has said it is doing this to protect its banking industry from foreign banks that have competitive advantages. I say that the US should do the same thing with our steel, manufacturing, and electronics industry. Since just like China we don't want foreign companies to get control and hurt our economy.
posted by Aleksandr at 8:27 PM
3 Comments:
And what happens when China and other countries decide they want the money we borrowed back?
We already do that, only less formally. Look at how crazed everyone got when Chinese companies tried to by Unocal and Whirlpool. Don't make out like the West plays a purer game.
To be honest, I don't know what the US Government policy is on forigners buying US banks.
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