China is ready to capture the global automotive business

China is becoming more aggressive in buying foreign assets. The country has sufficient funds to acquire the assets, depreciating during the crisis. Chinalco - a huge aluminum Corporation of China has spent $ 19.5mlrd, increasing its stake in Anglo-Australian mining giant Rio Tinto iron and steel industry by 15%. Rio needs the money because it can not cope with debts. Thus, China has secured access to mineral resources. Australian government tried to prevent the transaction, but the debts of concern were too large to handle them yourself. Even more important for Chinese interests, has become China Development Bank loan to Brazilian oil giant Petrobas of $ 10bln for research fields. The company also agreed to sell controlled by China's Sinopec crude oil. No need to carry out an investigation to establish that these measures were related. In late 2007, Petrobas announced that it discovered new oil fields that contain 8mlrd barrels of oil and gas, which made Brazil the owner of one of the largest oil reserves in the world. China will need a significant amount of resources for internal use for the next 2-3 decades. Brazil needs in the capital now. Consequently, China has oil to provide fuel for cars, metal, to build cars. According to Reuters, Chinese leaders are willing autocompanies unprincipled way to buy assets in the automotive industry. The longer the crisis, the greater chance of serious problems in some European and American automakers. This is a cynical but honest appraisal of the situation and, moreover, a clear sign of how the country is going to behave on the world stage. China can afford to participate in any business at any time range, if it meets the national interests of the country. Now this can not be said of any one nation in the world, including the U.S.. The U.S. government currently spends money trying to save the financial system and to cope with a million unemployment. In the 70th and 80th years of last century, Japanese companies have already made a similar breakthrough in the automotive market. But the Japanese build a brand, instead of purchasing them. What the Japanese took two decades, China is planning to make a couple of years, simply buying already existing, well-known brands. There is no reason to doubt that Chinese firms can use government money to buy the assets of Chrysler if the concern is on the verge of bankruptcy. In France, Citroen and Peugeot are facing financial problems, which can become worse if sales remain anemic. Thus, China can buy stamps, business assets, staff and dealer network on both sides of the Atlantic. The only obstacle that exists in the way of China's interests in the purchase of assets of auto companies is the potential desire of governments the U.S. and EU to block the buyout. However, this creates another problem: when the economic situation is such that there are many critical industries, why these assets should be protected? On the other hand, sales of assets would allow Chinese companies to keep jobs and tax revenue. U.S. and EU, having exhausted the options save the economy, may soon be required to sell plants.