Arthur,
At 19:37 12/08/2011, you wrote:
I recall that Japan made some high profile
investments in the US about 15 years ago or
so. Their market tanked and US real estate
retrenched at about the same time. Now its Chinas turn.
More like 30 years ago. Japan's export profits
were buying up vast real estate, particularly in
New York, as well as in Hollywood and some
manufacturing industry. Germany was, too, with
its export earnings. In contrast, America's
exports were declining. So America forced Japan
and Germany into the Plaza 'Accord' (!) in the
late '80s by which the dollar was devalued and
the yen and the deutschemark greatly revalued,
followed by all sorts of subsequent central bank
jiggery-pokery. Japanese and German exports
declined and investments in America promptly
stopped. America obtained this 'agreement' by
threatening to withdraw its 6th Fleet from the
Pacific and thus exposing Japan to possible
attack from China; and also by threatening to
withdraw US troops from NATO forces in Germany
leaving the country exposed to possible attack by Soviet Russia.
America can't do this anymore with China. Besides
if America heaved out China from its investments
in America then China might do the same for the
far larger American investments in China.
Actually, Chinese investments in America will
probably bring about more jobs for Americans, as
Japanese, South Korean and German investments
have done already in the last 15-20 years.
Keith
arthur
From: [email protected]
[mailto:[email protected]] On Behalf Of michael gurstein
Sent: Friday, August 12, 2011 12:30 PM
To: 'RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION'
Subject: Re: [Futurework] Chinese Investment
Grows in New York City - NYTimes.com
First we take Manhattan...
M
-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Robert Stennett
Sent: Friday, August 12, 2011 9:22 AM
To: EDUCATION RE-DESIGNING WORK INCOME DISTRIBUTION
Subject: [Futurework] Chinese Investment Grows in New York City - NYTimes.com
I don't think I know how to interpret this.... Comments would be welcome.
Barry
<https://www.nytimes.com/2011/08/11/nyregion/chinese-investment-grows-in-new-york-city.html?_r=2&ref=global-home>https://www.nytimes.com/2011/08/11/nyregion/chinese-investment-grows-in-new-york-city.html?_r=2&ref=global-home
As Investors, Chinese Turn to New York
[]
Jennifer S. Altman for The New York Times
Richard Xia, at the site of a hospital and hotel
project in Queens. Mr. Xia helped line up about
$30 million in financing from China for the development.
By
<http://topics.nytimes.com/top/reference/timestopics/people/s/kirk_semple/index.html?inline=nyt-per>KIRK
SEMPLE
Published: August 10, 2011
Chinese banks have poured more than $1 billion
into real estate loans in
<http://topics.nytimes.com/top/classifieds/realestate/locations/newyork/newyorkcity/manhattan/?inline=nyt-geo>New
York City in the past year. Investors from China
are snapping up luxury apartments and planning
to spend hundreds of millions of dollars on
commercial and residential projects like
Atlantic Yards in Brooklyn. Chinese companies
have signed major leases at the Empire State
Building and at
<http://topics.nytimes.com/top/reference/timestopics/subjects/f/freedom_tower_nyc/index.html?inline=nyt-classifier>1
World Trade Center, which is the centerpiece of the rebuilding at ground zero.
[]
Jennifer S. Altman for The New York Times
Xue Ya, president of the China Center, is
involved in business and cultural exchange. New
York, she said, is the starting point for going global.
Investment in the city by companies and
entrepreneurs from China has been surging in the
last few years, recalling the boom in Japanese
investment that swept the region in the 1980s
and helping to buoy the local economy even as
the country as a whole struggles to get out of recession.
The Chinese investments are occurring with
little fanfare, in part because Chinese
executives tend to shun publicity. But back
home, their government is urging them to invest
overseas to diversify Chinas foreign-exchange
holdings, develop business partnerships and
improve the countrys leverage in international affairs.
Dan Fasulo, managing director of
<http://www.rcanalytics.com/>Real Capital
Analytics, which tracks commercial real estate
sales, was combing through his files the other
day for deals in New York City that involved
Chinese investments. As the list grew longer and
longer, he paused, a tone of surprise in his
voice. Its truly amazing how much theyve been
able to do without being highlighted in public, he said.
Delegations of Chinese officials and executives
have been sweeping through the city, on a nearly
weekly basis, assessing the markets, searching
for office locations and meeting prospective
partners and clients. Last month, officials and
executives from China and the United States
filled a ballroom at the
<http://www.waldorfastoria.com/search/property-details.cfm?intPropertyId=16>Waldorf-Astoria
to make deals during a business conference.
Everybody wants to come to New York because New
York is the starting point for going global,
said Xue Ya, president of the
<http://www.chinacenter.com/>China Center, a
business and cultural organization that was the
first tenant to sign a lease at 1 World Trade
Center, where it will occupy six floors. Once
established in New York, Mrs. Xue said, you are a player.
Even one of the regions fastest growing
construction companies is Chinese. The company,
<http://www.chinaconstruction.us/>China
Construction America, has won contracts on major
public works projects, including the Tappan Zee
and Alexander Hamilton Bridges, the No. 7 subway
line extension and the $91 million
<http://cityroom.blogs.nytimes.com/2009/05/21/metro-north-station-opens-at-yankee-stadium/?scp=1&sq=Metro-North%20Yankee%20stadium&st=cse>Metro-North
Railroad station at Yankee Stadium.
China Construction is a subsidiary of a
state-controlled construction company in China.
The wave of Japanese investment in the city a
generation ago epitomized by the purchase of a
controlling stake in Rockefeller Center by the
<http://www.mec.co.jp/index_e.html>Mitsubishi
Estate Company of Tokyo in 1989 stirred
anxiety and even xenophobia. Some New Yorkers
saw it as evidence that the city and the country
were losing their dominant positions.
This time, city officials are welcoming Chinese
investment as a boon to the local economy. But
in a report in May, the
<http://asiasociety.org/>Asia Society and
the<http://www.wilsoncenter.org/> Woodrow Wilson
International Center for Scholars warned that on
a national level,
<http://topics.nytimes.com/top/reference/timestopics/subjects/p/protectionism_trade/index.html?inline=nyt-classifier>protectionist
impulses and anti-China sentiment, particularly
in Washington, could scare away investors.
Flush with capital from its enormous trade
surpluses, China has been on an investment
spree, especially in developing countries. While
the size of Chinas investments in the United
States pales in comparison with investments by
other countries, it has nevertheless been growing rapidly.
In terms of overall flow from China into the
U.S., many of us believe that it could
accelerate very quickly, and it could even
parallel what Japanese investment did in the
mid-80s, said Clarence Kwan, a senior partner
at Deloitte, a business services firm.
The Chinese government is acutely interested in
diversifying its foreign exchange reserves
beyond United States Treasuries. One sign of
this is the push by Chinese state-run banks to
invest their money in commercial real estate in New York City.
In one of the largest loans by a single lender
in the city since 2008, the Bank of China lent
$800 million late last year to refinance a
building on Park Avenue housing JPMorgan Chase
and Major League Baseball, analysts said. Among
other deals, the Bank of China recently agreed
to lend more than $250 million to refinance an
office tower at 3 Columbus Circle.
Analysts, as well as American and Chinese
officials, said it was hard to calculate the
precise size of Chinese investment in New York,
or even the number of deals with Chinese
involvement, because of the complexities of
international business arrangements and privacy
laws. But experts said the current level of
interest was only a hint of what could come.
Cong Zhong, chairman of
<http://www.icograda.org/members/members/member_list1131.htm>Kingee
Cultural Development Company, a conglomerate
based in Beijing that makes Chinese decorative
products, said he planned a foothold in North
America with a flagship retail store on Fifth
Avenue. If we start from New York, Mr. Zhong
explained in a telephone interview from Beijing,
it will be easier to expand.
Ning Yuan, president of China Construction
America, said he had not faced anti-Chinese
sentiment. The company, based in Jersey City,
uses union workers on its projects in the city.
So far so good, Mr. Yuan said. Our company
has a lot of experience in the past 20 to 30
years in China. The economy in China is booming,
and a lot of the construction projects have been
done by our company. Its good for the local
market that we can bring our expertise.
Chinese money is also poised to flow into the
city through a federal program that offers the
possibility of permanent residency to foreigners
who invest at least $500,000 in certain development projects.
Under this program, known as
<http://www.eb-5center.com/>EB-5,
<http://www.forestcity.net/offices/new_york/Pages/default.aspx>Forest
City Ratner Companies has arranged for $249
million in loans from Chinese investors for
residential and office towers at Atlantic Yards,
the commercial and residential project in
Brooklyn that includes a new stadium for the New
Jersey Nets. The developers of a hospital and
hotel project in Flushing, Queens, have lined up
about $30 million in financing from China,
turning away scores of other interested
investors, said Richard Xia, president of the firm raising the money.
Tourism from China is booming in New York as
well, helping to sustain the hotel, restaurant
and retail sectors. In 2010, 266,000 Chinese
people visited the city, a 45 percent increase
over 2009, according to NYC & Company, the citys tourism arm.
High-end real estate agents are doing their best to accommodate the influx.
Pamela Liebman, president of the
<http://www.corcoran.com/>Corcoran Group, said
her firm had fielded a huge increase in
inquiries from wealthy Chinese looking for
luxury residential properties, some in the $30-million-plus range.
We went from zero to 200 miles per hour in six
months, she said. This year, its the biggest
buzz word in real estate: Chinese.
Xiaolan Shang, an agent with
<http://www.elliman.com/>Prudential Douglas
Elliman, said that five years ago, she had very
few international clients. Now, about 90 percent
of her client base is Chinese and most pay in cash.
Ive had people come to New York only for the
weekend, Ms. Shang recalled. They see the
apartment, they make the offer and right away they fly back to China.
Cash deal, she added. Right away.
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Keith Hudson, Saltford, England http://allisstatus.wordpress.com/2011/08/
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