[Marxism] Growing Chinese economic influence

Louis Proyect lnp3 at panix.com
Sat Nov 20 08:55:15 MST 2004

The Independent, 20 November 2004
Saved: Chinese bail out Rover for £1bn
By Michael Harrison Business Editor

MG Rover, the last remaining British-owned volume car-maker, is set to 
be rescued with the help of more than £1bn of Chinese cash. But the 
agreement with the Shanghai Automotive Industry Corporation (SAIC), 
which is due to be signed early next year, will mean that control of the 
Longbridge-based motor manufacturer will pass out of British hands.

A new joint-venture company will design, develop and produce cars. It 
will be 70 per cent owned by the Chinese and 30 per cent by MG Rover.

The deal comes as MG Rover's financial plight worsens. Its losses this 
year are expected to be more than £100m and its share of UK car sales 
has slumped to an all-time low of under 3 per cent. Huge damage has been 
done to the brand by accusations of boardroom greed and asset-stripping 
levelled at the four Midlands businessmen who bought it from BMW four 
years ago for a symbolic £10. Last week, a senior BMW executive called 
them the "unacceptable face of capitalism".

There will be separate British and Chinese companies to manufacture the 
new models in Birmingham and Shanghai but the key assets and 
intellectual property rights of the two car-makers will be contained in 
the Chinese-controlled joint venture.

full: http://news.independent.co.uk/business/news/story.jsp?story=584777


NY Times, November 20, 2004
China Widens Economic Role in Latin America

SANTIAGO, Chile, Nov. 19 - The expected arrival here on Friday of 
President Bush, who personifies for Latin Americans the economic and 
political power of Washington, is being greeted with an uneasy mix of 
protests and hopes for greater growth.

But while the United States may still regard the region as its backyard, 
its dominance is no longer unquestioned. Suddenly, the presence of China 
can be felt everywhere, from the backwaters of the Amazon to mining 
camps in the Andes.

Driven by one the largest and most sustained economic expansions in 
history, and facing bottlenecks and shortages in Asia, China is 
increasingly turning to South America as a supplier. It is busy buying 
huge quantities of iron ore, bauxite, soybeans, timber, zinc and 
manganese in Brazil. It is vying for tin in Bolivia, oil in Venezuela 
and copper here in Chile, where last month it displaced the United 
States as the leading market for Chilean exports.

While President Bush is spending the weekend here for the Asian-Pacific 
Economic Cooperation forum, President Hu Jintao of China is here in the 
midst of a two-week visit to Argentina, Brazil, Chile and Cuba. In the 
course of it, he has announced more than $30 billion in new investments 
and signed long-term contracts that will guarantee China supplies of the 
vital materials it needs for its factories.

full: http://www.nytimes.com/2004/11/20/international/asia/20china.html

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