{"id":2817,"date":"2011-01-11T07:05:02","date_gmt":"2011-01-11T14:05:02","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=2817"},"modified":"2018-08-16T17:21:17","modified_gmt":"2018-08-16T21:21:17","slug":"peripheral-signs-of-chinese-nervousness","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2011\/01\/11\/peripheral-signs-of-chinese-nervousness\/","title":{"rendered":"Peripheral signs of Chinese nervousness"},"content":{"rendered":"

That reliable source of geopolitical information, Stratfor, is reporting that the Chinese government recently formed a company called The Guoxin Asset Management Corporation.\u00a0 It was capitalized with $680 million in funds.\u00a0 That company, in turn, has just taken spent some of that money to make equity stakes in two separate businesses.\u00a0 These are China Railway Signal and Communication Corporation and China Railway Material Group.<\/span><\/p>\n

It is Stratfor’s belief that these actions are evidence that China wants to use Guoxin to bring other Chinese businesses under stricter government control.\u00a0 An additional focus may be strategic industries.\u00a0 The actions that are expected to take place are reform and restructuring.<\/span><\/p>\n

Stratfor believes that the goal of the Chinese state is to make these state owned enterprises more efficient so that they siphon off less capital from more efficient, faster growing, private enterprises.\u00a0 This is clearly a good thing if accomplished.<\/span><\/p>\n

Speculation is also circulating that Guoxin may also be in charge of consolidating China’s rare earth minerals businesses in order to gain economies of scale.<\/span><\/p>\n

For me, these actions from the government of China are evidence of a government highly focused on making its capital more efficient.\u00a0 That is exactly what nations have to do when capital is too cheap\/plentiful.\u00a0 That is, this is another way for the Chinese to manage rampant inflation and concurrent investment in inefficient businesses.\u00a0 Can you say: bubble?<\/span><\/p>\n

Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

That reliable source of geopolitical information, Stratfor, is reporting that the Chinese government recently formed a company called The Guoxin Asset Management Corporation.\u00a0 It was capitalized with $680 million in funds.\u00a0 That company, in turn, has just taken spent some of that money to make equity stakes in two separate businesses.\u00a0 These are China Railway […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-2817","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=2817"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2817\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=2817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=2817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=2817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}