China offers to finance 30 per cent of India’s infrastructure development plan

[Water Car Engineer]

Imo, Indian rupees is depreciating and it's going to be a bad long term return for the Chinese investors. Why don't india just use Western infra companies? Is it because they know it ain't worth it to invest in india?

West doesn't, but Japanese banks do.

Bangalore Metro

Chennai Metro

Hyderabad Metro

Mumbai Metro

Jaipur Metro

Mumbai Monorail

Gurgaon metro


A lot of these examples have gotten Japanese financial assistance.

 

[Chinese-Dragon]

@Chinese-Dragon

Is this the most China plans to invest in a single country? In a rather short period of time..

It's hard to say for sure, because a lot of outwards Chinese investment is "disguised" using various fronts, to prevent the Western media from getting a panic attack. (They still get panic attacks anyway).

But not counting those, I think the "outward investments" from China in 2013 were estimated at around $85 billion.

So a $300 billion investment over five years would come near the top of the list, though I guess America will always be the biggest recipient of outbound Chinese investment, which I consider to be extremely unfortunate.

 

[bolo]

Dls

It's hard to say for sure, because a lot of outwards Chinese investment is "disguised" using various fronts, to prevent the Western media from getting a panic attack. (They still get panic attacks anyway).

But not counting those, I think the "outward investments" from China in 2013 were estimated at around $85 billion.

So a $300 billion investment over five years would come near the top of the list, though I guess America will always be the biggest recipient of outbound Chinese investment, which I consider to be extremely unfortunate.

China has no choice in this regards.

China spending money to develop Indian infrastructure is a short-term thinking which will backfire in the long term.

If China needs to invest somewhere, it should do so in Indonesia. Indonesia is looking more favorable as a long term investment. Also, it sits right next to the Malacca Straits and China needs to increase influence in that region. A bonus would be that a strong Indonesia would throw a major kink in the US-Australia alliance being formed against China in the region.



Ding ding ding!
Give this man a cigar!

You are the only one who figured out China's real motive in all this. It has nothing to do with keeping Chinese factories busy or diverting Chinese reserves.

And the winner is india, like how China was a recipient of USA generosity during the cold war to buy its influence from USSR.

 

[Chinese-Dragon]

China has no choice in this regards.

That's why we are finding a way to get more choices.

When we are holding so much US treasuries, what is stopping America from doing QE1, QE2, QE3, QE4, etc?

Every time they do that, they devalue the US dollars in our hands, they are essentially putting a stealth tax on us, stealing the money we earned, and using it to contain us!

America will do QE whenever they want, and anyone holding US dollars will be screwed again and again. And it solidifies the place of the US dollar as the world's reserve currency. None of that is in our interests.

 

[Water Car Engineer]

This is an incredible amount, my god. I would've never guessed that much coming from China.....

Mind blasted

 

[bolo]

That's why we are finding a way to get more choices.

When we are holding so much US treasuries, what is stopping America from doing QE1, QE2, QE3, QE4, etc?

Every time they do that, they devalue the US dollars in our hands, they are essentially putting a stealth tax on us, stealing the money we earned, and using it to contain us!

America will do QE whenever they want, and anyone holding US dollars will be screwed again and again. And it solidifies the place of the US dollar as the world's reserve currency. None of that is in our interests.

Nothing anyone can do about it until the American military can be defeated. It can be QE4ever as long as their military dominate the world. Of course you can diversify but putting money in indian infrastructure is to really counter jap influence. I don't know if this will work in the long term.

 

[Chinese-Dragon]

Nothing anyone can do about it until the American military can be defeated. It can be QE4ever as long as their military dominate the world. Of course you can diversify but putting money in indian infrastructure is to really counter jap influence. I don't know if this will work in the long term.

Depends what you mean by defeat.

In terms of protecting our own landmass and region, we already did that in the 1950 Korean War, in which we surged into the Korean peninsula and pushed the USA + 16 of her allies into the longest retreat in the history of the American military forces.

If you mean the seas and the oceans, then yes America still dominates.

However we have our DF-21D, and the upcoming HGV, which we can produce in endless amounts if we go into war mode. They on the other hand, have to cross the entire Pacific Ocean, and rebuild their destroyed ships, and find replacement soldiers, while all we have to do is pump out missiles at a fraction of the cost. It will always be cheaper for us.

In one or two decades, we should be able to negate their military influence significantly.

 

[Developereo]

And the winner is india, like how China was a recipient of USA generosity during the cold war to buy its influence from USSR.

This is a brilliant move by the Chinese policy makers.
From purely a business ROI perspective, there are far better alternatives than India, viz. Brazil, Indonesia, Mexico.

This move is intended to create a constituency in India to slow the Japan-India rapproachment against China. Indians may claim (publicly) that their relationship with Japan is not anti-China, but the Japanese certainly don't see it that way, and they will eventually demand evidence that India is on the same page.

 

[Chinese-Dragon]

This is a brilliant move by the Chinese policy makers.
From purely a business ROI perspective, there are far better alternatives than India, viz. Brazil, Indonesia, Mexico.

This move is intended to create a constituency in India to slow the Japan-India rapproachment against China. Indians may claim (publicly) that their relationship with Japan is not anti-China, but the Japanese certainly don't see it that way, and they will eventually demand evidence that India is on the same page.

We can outbid Japan in any situation. Check their recent non-existent economic growth rate.

And our currency reserves are larger than the rest of the world's currency reserves combined.

Which means we can afford to offer financing/loans to other countries at the cheapest possible rate.

So we get the contracts. Not to mention, we have by far the most experience in building infrastructure in the developing world, and everyone knows it.

We get the payment in the short-term, while it will take a decade for the receiving country to recoup costs from the infrastructure (since infrastructure is generally a long term investment in any case).

By the time that happens, we'll have used the money we earned to move far ahead. Too far ahead to catch.

 

[Reviewer21]

Indian has no reason to refuse, I mean China investors are expecting a substantial rate of return from the investment and Indian also benefits a lot. The reason why India's industrial output is behind China is that the infrastructure is not be able to fully guarantee the long-term operations of business. For companies, a quicker operating cycle by delivering goods to customers in much faster and cheaper way will help this company collecting cash back effectively. And more railways will help this. Indian should welcome China's investment.

Well the brains are working here to decide whether it is of any use or not. So let's wait

 

[godofwar]

India will get FDI which it craves so badly.
China will get an investment opportunity for its ginormous reserves.
This will further boost our relations.
Win Win.

 

[Arya Desa]

If Bombay can finally look just 1/10 as nice as Shanghai I will change my attitude towards China (which had previously been tarnished by racism I experienced as a child from my classmates father who called my a "achha")

 

[Developereo]

We can outbid Japan in any situation.

This is not about money.

Japan and the West invested in China because it was -- and remains -- one of the most logical places to invest, offering high ROI. This is simply not the case with India, since many other countries are far better bets and attract more FDI -- especially as a percent of their GDP.

This offer is about buying influence and, unlike Japanese money, Chinese money has to battle against outstanding India-China issues.

 

[Chinese-Dragon]

If Bombay can finally look just 1/10 as nice as Shanghai I will change my attitude towards China (which had previously been tarnished by racism I experienced as a child from my classmates father who called my a "achha")

The Cantonese phrase "Ah Cha" is not necessarily racism.

During the period of colonization, many of the police officers in HK were brought over from British India, and they were from Punjab province.

They had a word in their North Indian dialect which meant "OK, good" which sounded like "accha" and that is how they got that nickname.

 

[kbd-raaf]

This is not about money.

Japan and the West invested in China because it was -- and remains -- one of the most logical places to invest, offering high ROI. This is simply not the case with India, since many other countries are far better bets and attract more FDI -- especially as a percent of their GDP.

This offer is about buying influence and, unlike Japanese money, Chinese money has to battle against outstanding India-China issues.

How does India not offer good ROI? How does Brazil etc have better ROI possibilities? Do tell. Quantified if you would.