[Marxism] China Investment Corp.
poeticaleconomy at yahoo.com
Fri Oct 30 11:54:39 MDT 2009
On talking to my father, the hotelier or "hospitality" capitalist -- bane of UNITE HERE's existence, recently, he mentioned how Asian sovereign funds are now scouring the hotel market (along with himself) for bargains. China's included. Now I've little sense of what makes a contemporary Maoist, although there seem to be quite a few on this list, but just a little knowledge of these sovereign funds lends quite a bit of creedence, if not concretion, to Tony Cliff's "state-capitalist" analysis of China.
Consider this excerpt from the China Investment Corp.'s "About Us" tab @
'China Investment Corporation (CIC) is an investment institution established as a wholly state-owned company under the Company Law of the People’s Republic of China and headquartered in Beijing.
The mission of CIC is to make long-term investments that maximize risk adjusted financial returns for the benefit of its shareholder.
CIC was established on September 29th 2007 with the issuance of special bonds worth RMB 1.55 trillion by the Ministry of Finance. These were, in turn, used to acquire approximately USD 200 billion of China’s foreign exchange reserves and formed the foundation of its registered capital. Because its financing is grounded in financial instruments and subject to commercial obligations, CIC maintains a strict commercial orientation and is driven by purely economic and financial interests.'
Cliff couldn't have said it better. In fact, the above improves on his analysis substantially, at least for me.
The very best,
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