Britain and Australia refused to sign off on investments where state-owned Chinese companies were ready to provide much-needed funding. In both cases, the long-term utility programs were halted in the later stages, stunning participants. Those in the U.K. were all set to join a signing ceremony when the announcement came.
“As China’s diplomatic policies become more and more assertive, there’s a trend that these countries are gradually enhancing their vetting on Chinese investment,” said Tao Jingzhou, a managing partner at Dechert LLP in Beijing. “This is an attitude change.”
Chinese firms in the midst of a record overseas spending spree are buying foreign utilities at the fastest pace in eight years, according to data compiled by Bloomberg. Infrastructure deals, especially, are set to come under increased scrutiny by incoming governments wary of giving China access to their nations’ critical networks.
U.K. Prime Minister Theresa May’s government is reconsidering a plan to build Britain’s first nuclear-power facility in more than 20 years. China General Nuclear Power Corp. had agreed to pay for about one-third of the 18 billion-pound ($23.4 billion) project, which has been progressing for years. May’s administration said last month it wanted more time to study the deal.
One of May’s advisers, Nick Timothy, warned last year that China’s involvement in nuclear projects might allow it to “shut down Britain’s energy production at will.”
For the complete article please visit
Bloomberg
ABOUT
Dynamic Wealth Research was founded on the principle the world is changing at an ever-increasing pace. The greatest profit opportunities an investor will ever find are from massive, sweeping changes. Dynamic Wealth Research analyzes and closely follows these changes, keeps its readers on the leading edge of them, and shows you how to be best positioned these anxious, interesting, and ultimately profitable times.
