Risky business

Here is an example of why America needs to be a big player in the global world and economy. Why we need to woo other countries, especially those vital to our economic and security interests. A word of caution for those who tend toward isolationism or who believe MAGA somehow includes an America that can thrive on its own interests alone.

Chi­nese in­vest­ment is re­treat­ing from the West as hos­til­ity to Chinese cap­i­tal has grown. Increas­ingly, Chi­nese companies are instead spend­ing money on fac­to­ries in South­east Asia and min­ing and en­ergy projects in Asia, the Mid­dle East and South Amer­ica, as Bei­jing seeks to ce­ment al­liances in those places and se­cure ac­cess to crit­i­cal resources.

The big­gest re­cip­i­ent of Chi­nese in­vest­ment so far this year is nickel-rich In­done­sia, ac­cord­ing to a pre­lim­i­nary es­ti­mate of Chi­nese invest­ments com­piled by the Amer­i­can En­ter­prise In­sti­tute, a conservative v­a­tive think tank, and viewed by The Wall Street Journal. Nickel is a key com­po­nent in many of the bat­ter­ies used to power elec­tric vehicles.

The shift in in­vestment flows shows how China is re­sponding to sour­ing re­la­tions with the U.S.-led West, and is strength­en­ing trade and in­vest­ment links with other parts of the world, in ways that could cre­ate new fault lines in the global econ­omy.

Chinese Money Flees the Western World, The Wall Street Journal 7-23-23