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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (48834)	4/3/2006 8:58:23 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

[These guys should have their heads checked<g>]--"Schumer, Manzullo May Find Higher Yuan Buys China More in U.S." April 3 (Bloomberg) -- Senator Charles Schumer, Representative Don Manzullo and other U.S. lawmakers are pressing China to let its currency rise against the dollar while also opposing Chinese purchases of some U.S. assets. They can't have it both ways, economists say. ``A stronger yuan could lead to greater Chinese asset accumulation in the U.S. and elsewhere,' says Gary Becker, professor of economics at the University of Chicago and Nobel economics laureate. A market-based exchange rate would give the Chinese ``far more buying power of dollar-denominated assets,' says Stephen Roach, chief global economist at Morgan Stanley in New York. Investment bankers say companies on China's list range from manufacturing to natural resources. Bill Reinsch, president of the National Foreign Trade Council in Washington, says many of the items on China's wish-list, particularly in energy and technology, are certain to generate the kind of national-security opposition that sank last year's effort by Cnooc Ltd., China's third-largest oil company, to buy Unocal Corp. ``Every Chinese acquisition going forward will generate controversy,' Reinsch says. ... Direct Investment So far, Chinese direct investment in the U.S., in companies, factories and other production assets, is dwarfed by investment from other countries such as the U.K. and Japan. China directly invested $181 million of new money in the U.S. in 2004, compared with $19.4 billion from the U.K. and $16.1 billion from Japan, according to the U.S. Commerce Department. ... bloomberg.com