During the weekend, I was host of CCTV, to comment live on the report of the chairman of the He Lifeng commission.
This video tackles a rather hot topic, namely: how do we protect Europe and Italy from acquisitions often predatory, implemented by foreign entities and, in particular, by Chinese entities? The Geraci Plan could be the solution…
Nobel Prize in economics so was awarded to Richard Thaler, surprisingly a professor at Chicago University, the cradle of rational economic’s. However Thaler believes that when doing economic analysis we must take into account the human and the psychological factors which may lead to not-so-rational choices. Predicting side-effects and unintended consequences would then be part of the model
China continues to produce technological innovations also in the historically dominant domains of the West. It works a unified system, and all expansion plans, cross-border M & A, investment and more are part of a very precise plan. Moreover, China, just like a corporation, acts according to a five-year plan. We, in Italy, should also take this as an example, without necessary turning Italy into a state-planned economy.
The Chinese economic and financial system has the capability to react to shocks, re-adjust to new needs and face crisis with a degree of flexibility and speed of execution that no other country in the world has. However, the growth of the Debt/GDP ratio is, by no mean, a surprise, rather the natural outcome of some well-known factors.
There is a certain similarity in the way China and France carry out cross-border M&A. Both countries act in a systemic manner, both when dealing with inbound and outbound transactions. However, the reality is often different and national interests prevail over liberal approaches. China tries to find a balance between those two pull factor and the recent One Belt One Road initiative, or the New Silk Road, maybe the way for China to persuade international partners that the country is indeed committed to open trade and open investments.
La Cina continua a spingere su piu’ fronti per conquistare il mercato mondiale del manifatturiero, facendo leva su valori occidentali quali il libero mercato e lo sviluppo della finanza internazionale. I politici dell’Occidente, adulati dal fatto che la Cina accetti finalmente il nostro modo di pensare, ci cascano, dimentichi della leggenda del cavallo di Troia.
The One Belt One Road Initiatives is not moving as fast as originally hoped by Chinese policy makers, but not a surprise for the experts. The OBOR is part of a four-pronged approach to the expansion of Chinese economic influence that seems to have an inverse relationship between the chronology of the announcement and its feasibility: 1) the Internationalization of the RMB; 2) One Belt One Road; 3) AIIB, 4) China Manufacturing 2025.
Geraci attended China Financial Summit 2017 conference, today in Beijing. In his speech, he said Foreign investors are a little reluctant to invest in the Chinese market especially A-Shares for many reasons. Geraci also believes that Chinese interest rates are not high enough to compensate for risk. Moreover, he thinks it is more difficult for China to export its infrastructure model to foreign countries because foreign governments have no control over infrastructure development.