Tuesday, February 25, 2014

China continues to steadily diversify

We have noted that China is looking for ways to diversify out of its overdependence on the US dollar and US bonds. There are many news articles about this but here is one that illustrates that they continue to do at a steady pace.

Some quotes:

"Industrial and Commercial Bank of China Ltd announced on Jan 29 it had reached an agreement with Standard  Bank Group Ltd on acquiring a 60 percent share in Standard Bank Plca
London based entity that trades currencies, commodities, stocks and bonds, for about $750 million."

"ICBCalso the world's most profitable lender and largest bank by assetsis not alone in 
extending its reach to the African continentwhich has become a hot investment destination 
for Chinese businesses."

"In the futureChina will not only expand trade with Africa but also increase investment in
 the continent," said Li Wentaoaresearcher at the Institute of African Studies at the   China Institutes of Contemporary International Relations.
"Chinese businesses will co-develop with locals and set their roots locally."
In the US we tend to think everything revolves around the US economy. But that has changed over time and there is expanding trade and commerce around the world. More and more trading deals are bypassing the US dollar as well. 

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