As the the whole world is scared of corona and its impact is also clear on the economies of all the countries. as all the countries and their economies are struggling with the COVID19.
The stock market of all the countries almost in a worst situation crashing down and a downfall in the companies share prices.
Here, china is taking it like an opportunity, china will start investing in the countries in order to control their economy .(in short by way of hostile takeover of companies). China’s foreign exchange reserves increased with US$35.2 billion due to some changes in currency and the prices of internationally all the assests that china holds.
Before, this USA was the one who makes huge investment in countries . But in this pandemic, USA also on a high suffering stage. during the past China’s trade increased with 3.4% i.e, around $4.6 trillion. And their is a deficit in the USA trade with 1.7% i.e, $616.8 billion. India also saw a positive high growth of 1.93%.
China’s policy is to investing in a country upto that extent the said countries are buried in the huge and huge debt and then start executing that countries with its own control.
China has already a huge control on the other economies.
Here, Pakistan is a great example as china testing its covid test kits on pakistani people’s, if in case any negativity in testing then, pakistan will lose their people’s not china. from this it would be clear as upto how much extent china controlling pakistan. china has became the greatest supplier of Pakistan by using Pakistan’s resources and expanding our export at a big level in Pakistan . China’s export in Pakistan has increased with 1.3times during the past years.
Now, China’s next target is Africa. before, this China has exported almost US$52.86billion to Africa and imported US$49billion. ( in short china has a US$3.86 billion trade surplus with Africa ) probably in this pandemic, country like africa will accept the investment of china and then china will buried them till the debt and starts rulling and executing on it.
Here, India has taken a smart step by amending their FDI (foreign direct investment) norms against china from automatic route to approval route i.e, (now china has to take prior approval from indian government before investing ,which was not earlier).
China’s investment in india during the December 2019 exceeds with US $8billion perhaps, now china will try to stepped into india by investing in various sectors and grasp a huge control later on. but here, Now india has became well versed with china’s cruel strategy.
– Prachi Saxena
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