Is the U.S. Missing Out on Chinese Investments?

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Oct. 21 (Bloomberg) -- G. “Anand” Anandalingam, dean of Imperial College Business School and Jonathan Femby, China team managing director at Trusted Sources, discuss China’s global investments, the country’s increased investment in the U.K. and whether the United States is missing out on funds due to concerns raised by the recent government shutdown. They speak on Bloomberg Television’s “The Pulse.”

Thank you very much indeed for joining us.

Professor, let me start with you.

The united states and other economies have concerns about chinese involvement.

This goes to security to intellectual property.

Are those fears unjustified?

I don't think they are completely unjustified.

You have to be a bit cautious dealing with the chinese especially when it comes to things like telecommunications infrastructure.

The chinese companies as well as the chinese economy, they are really on the move.

You can't simply be so cautious that you don't do anything.

Jonathan, how does the chinese government view the u.k. right now?

Is it seen as a soft touch or are other seen is missing out?

There has been a big push for investment in the u.k. by china.

The chinese, they are going out.

We are in the second stage of chinese output investment.

The first was into raw materials.

Copper, oil, etc.

Now, they want to buy into companies abroad.

They see the u.k. as an open economy with a decent, reliable legal system.

To some chinese companies, britain is a good business opportunity.

The big property company wonder which is now doing big development on the south bank of the tames -- thames, he said london is cheap.

Then you get instances like the nuclear thing which you just reported.

That is good for the chinese new their companies because they can acquire more technology.

They want that for domestic reasons to push their own energy.

They want to establish an international footprint.

This serves the chinese purpose.

Can i add something to that?

I think the chinese are also interested in the next generation of innovation.

So far, you can see that they are more of an imitator country than an innovation country.

I think they will learn about -- a lot from the edf venture.

They're also looking at innovations in various places.

They are doing a lot of joint work with some of the chinese universities as well as chinese companies.

They're looking at innovation in manufacturing, in new materials, and energy.

There is going to be a new wave of chinese interest in joint programs, joint investments for innovation purposes.

Do you think the u.k. example will be seen as an example in washington as something that is a good thing?

How do you think washington will do the u.k. and its pitch towards beijing?

I think if you look at chinese investment over the last two or three years, they really turned their attention to europe.

It is almost like the horse has left the barn.

They are already investing in europe.

The rate of increased investment as well as innovation and manufacturing and natural resources and so on in europe is now twice as fast as in the u.s. the u.s. might view it, might also talk about their own experiences and those kinds of things.

We need to listen to what is coming out of the u.s., but on the other hand, things move so rapidly that it is difficult to say, stop.

I think tennessee's europe as being quite cheap, relatively -- china sees europe as being quite cheap, relatively.

Various european governments were asking the chinese to buy their bonds, to lend them money.

The chinese view was, know this will be a business opportunity.

We have a lot of capital and there will be cheap companies.

Although being an obvious example.

-- volvo being an obvious example.

How much will this grand european companies in china?

I am a european company and we invite the chinese to compete in our market.

The united states has decided not to do that.

Does that mean that i should enjoy similar privileges in the chinese economy?

Or does it not work that way?

It doesn't really work that way.

Should it work that way?

Exit should.

One would have liked george osborne to have pushed that a bit more.

He was being so friendly to everyone.

You get still a lot of china preference.

Certainly in the public sector and so on.

You are in a very competitive market in china.

Professor, your view on that?

I give you one example.

I want your viewers to be clear that it is not the u.s. doesn't want to play in china.

There is a lot of investment of chinese companies in the u.s. too.

In the national gas -- natural gas industry, there is about a billion dollars.

Washington feels more hostile.

In terms of some industries like telecommunications and so on where they think there is a lot of stealing of intellectual property and a possibility the chinese would spy on things going on.

Ironic.

All of that is true.

One needs to be cautious at the outset.

In terms of what you were talking about, there should be a reciprocal arrangement.

An example, the u.s. got annoyed with the chinese about 10 years ago on human rights which it should come actually.

Mercedes-benz and chrysler were trying to make a deal to sell minivans in china.

The next thing you knew, the mercedes got an open carte blanche when chrysler got stymied.

Mercedes is now the biggest truck manufacturer.

It is one of those things where you have to work with caution.

100%. on the other hand, you have to push for reciprocal arrangements.

But we also have to come to the reality that is is a huge market.

They are moving at a rapid days.

This text has been automatically generated. It may not be 100% accurate.

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