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It's been a record year for Chinese investment in the US.
Leaving many to fear that China is taken over -- some point.
The Chinese have snatched -- six and a half billion dollars in US assets just this year alone.
And that breaks the previous record of just over five billion in 2010.
And our next guest says there is it big reason to be concerned some of this -- deals are actually dangerous to our country.
Here explain what China wants is Gordon Chang author of the coming collapse of China.
According I'm glad to America's this sounds really scary are you worried about this mean there there.
AIG most recently four point two billion dollar that's the biggest Chinese takeover thus far.
Are you worried that this is it going to be trend -- certain.
We're gonna be a trend because what's happening in China is that enterprises don't have the opportunities there present problems in the Chinese economy right now which are pretty serious.
So these enterprises are going around the world buying up assets because the returns are a lot better so you a lot of this activity doesn't -- -- but some of it does because you see in certain of these.
Acquisitions like they want to through systems the battery maker right Nixon -- to be a Canadian oil -- producer.
Dealer looking for technology and some of this technology has defense applications like this battery maker a one -- eight and they're and they're buying this stuff up.
And that's something we have to be concerned about and we should stop it.
Do you worry there -- -- -- a -- that we just -- -- election there's new people leaving are you worried that the new leadership is gonna make this even worse.
-- the leadership in China right now is.
The so called conservatives but in the Chinese context that really needs hardline anti reformers they want to close off opportunities for foreigners so while you have these Chinese enterprises going around the world buying up assets.
The opportunities for not only foreign companies but also domestic private entrepreneurs to private.
Narrowed and that's real problem for China because -- -- an anti reform period.
I know the other thing you -- a lot about is China as a currency manipulator and the fact that administration does not place enough weight on this this worries YouTube -- because.
US law requires treasury to designate -- country or currency manipulator if -- meets your requirements if it manipulates its currency and it does to get a trade advantage.
And and it's open and shut case China qualifies.
You know if we are not going to enforce our -- law that's a real problem so you know whether it's good policy or bad policy we need to enforce -- law but the Chinese when they see this not enforcing -- law they -- -- not serious about China's trade violations and this makes Beijing much more intransigent but yet you've said to me in the past that China needs us more than we need them.
Oh for sure because last year a 190 point 5% of China's merchandise trade surplus.
Not related to sales to the United States that means they run deficits with the rest of the world so they run this enormous surplus with us.
And that -- leverage but only if we -- to use it.
I remember when I was a kid -- they -- Japan was buying up Rockefeller Center Japan's gonna take over the world that never happens.
No but Japan was our ally and friend so we can deal with the Japanese on a on a reasonable basis the problem with China of course.
Is that it sees itself -- -- planting the United States it's been very hostile and aggressive in recent years it's trying to push the US out of Asia.
They're not our friend and so we don't want to give them a big foothold in our economy.
OK so that being said -- -- how do we stop this.
-- will not allow these deals to happen I mean then -- the US is basically putting up offense well.
The Chinese put -- offense and we couldn't buy for instance they want to three systems if -- -- Chinese enterprise.
But you know we can stop this because the committee on foreign investment in the US.
Has the final say on on sensitive acquisitions and so they can stop the a 123 acquisition.
And they probably shouldn't -- Gordon Chang thank you for being here thank you the coming collapse of China we chassis its common and that -- --
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