1.14.2021

Do you know how many US corporations China now owns? Did you know they tried to aquire the Chicago Stock Exchange? You might be surprised..... and you should be concerned.

"....There are two strategies China follows to achieve colonization: mergers and acquisitions and supply chain dependency.

Between 2002 and 2016 China acquired $145 billion in American-owned assets including more than 50 companies each worth at least $50 million. Over the period 2005 to 2019 Chinese investors entered into more than 250 deals with the holders of $180 billion in U.S. assets chiefly in real estate, finance, transportation, and technology. In 2016 alone 61 deals were executed.

Chinese investors own many U.S. companies including GE Appliances, AMC, the Waldorf Astoria, Motorola Mobility, Smithfield Foods, Sotheby’s, MD Anderson Cancer Center Proton Therapy Center, and KHSL-TV. For several years China has been negotiating a complete acquisition of Genworth Financial, a Fortune 500 insurance holding company. Chinese investors tried but failed to acquire the Chicago Stock Exchange because the Securities and Exchange Commission would not approve the deal.

 From that perspective, China is able to build a global empire because U.S. consumers and producers turn to Chinese manufacturers for their low-cost computers, cell phones, apparel, and fashion. The United States does not sell enough commercial aircraft, soybeans, and semiconductors to close the gap. To handle the overall trade deficit with China, the United States has to borrow money from China, sell equity positions in U.S. companies, or both. Thus, the colonizing logic of the Chinese Chamber of Commerce having locations in Hawaii, Los Angeles, New York, Chicago, Seattle, San Francisco, and Cincinnati, and the Bank of China having two branch locations in New York and one each in Los Angeles and Chicago.

China’s second colonization strategy is supply-chain dependency which is the direct and intended result of her policy of positioning herself as the lowest cost producer of manufactured goods in the world (absolute advantage). China has become a major source of automotive parts including brakes, lithium batteries, engines, engine parts, and generators. China’s share of U.S. automotive parts has nearly doubled since 2007 no doubt due to heavy subsidies from the Chinese government. Today the United States is the largest importer of Chinese auto parts. The U.S. dependency on China is probably even greater because China supplies subcomponents to Mexico and Canada which are used in vehicles exported to the United States. Further, China has at least 105 suppliers in the United States along with Chinese firms located outside China that supply auto parts to the United States.  

In 2017, the U.S. imported $260 billion in electronics including smart speakers, virtual reality electronics, drones, and wide-screen televisions. U.S. production of computer and electronic products dropped from $53.9 billion in 2015 to $44.2 billion in 2017 to $41.0 billion in 2019.

China has an impressive record regarding its share of the pharmaceutical market in the U.S.: 97 percent of antibiotics, 95 percent of ibuprofen, and 91 percent of hydrocortisone. Between 2010 and 2018 U.S. imports of Chinese pharmaceuticals increased from $1.7 billion to $3.0 billion.

At a 2019 press conference on the indictment of three Chinese nationals for importing and distributing fentanyl, the U.S. district attorney made the following observation. “Make no mistake: China is waging an undeclared war on our country and our American way of life, with deadly drugs serving as its weapon of choice…. China is supplying the United States with the most potent and deadly fentanyl and other synthetic opioids on the market today.”

For years, China has been shipping food to the U. S. that has been contaminated with cancer-causing chemicals, banned antibiotics, bacteria, and illegal pesticides. A recent review of 100 studies regarding the extent of heavy-metal pollution on farmland and urban soils in China stated the following: “As a result of soil pollution, green plants and agricultural grain products are increasingly polluted, creating public and ecological health risks.”