China is ready to take over worlds automobile business

China becomes more and more aggressive in purchase of foreign assets. The country has enough means to get the assets which fell in price during crisis. Chinalco – the huge aluminum corporation of China spent $19.5 billion, having increased a share of the actions in the British-Australian giant of the mining and metallurgical industry of Rio Tinto to 15%. Rio needs money as cannot independently cope with debts. Thereby China ensured access to minerals. The Australian government tried to prevent the transaction, but debts of concern were too great to cope with them independently. Even more important for the Chinese interests, became the credit of the Chinese development bank to the Brazilian oil giant Petrobas of $10 billion for research of fields.

The company also agreed to sell to the Sinopec supply company of crude oil operated by China. It is not necessary to make investigation to establish that these measures were connected. At the end of 2007 Petrobas declared that the new oil fields containing 8mlrd barrels of oil and gas which made Brazil the owner of one of the largest oil and gas stocks in the world are found. China will need essential quantity of resources for internal use the next 2-3 decades. Brazil needs the capital now. Therefore, China possesses oil to provide fuel for cars, metal in order that to construct cars. According to messages of agency Reuters, heads of the Chinese auto companies are ready to buy up unscrupulously assets in an automobile industry. The longer crisis, the bigger chance of emergence of serious problems at some American and European auto manufacturers lasts. It is cynical, but honest assessment of the situation and, besides, a clear sign of how the country is going to behave on the world scene. China is able to afford participation in any business at any temporary distance if it corresponds to national interests of the country. Now such cannot be told about one nation in the world, including about the USA.

The American government at the moment spends money, trying to keep a financial system and to cope with million unemployment. In 70th and 80th the last century the Japanese companies already made similar breakthrough on the automobile markets. But Japanese created brands, but did not get them. That, on what was required to Japan two decades, China plans to make for few years, simply buying already existing, famous brands. There are no reasons to doubt that the Chinese firms can use government money to redeem assets of Chrysler if the concern is on the verge of bankruptcy. In France Citroen and Peugeot face financial problems which can become even worse if sales remain anemic. Thus China can buy up brands, production assets, the personnel and dealer networks on both sides of Atlantic. The only obstacle existing on the way of interests of China in purchase of assets of the automobile companies is the potential desire of the U.S. Governments and the EU to block buying up. However, it will create one more problem: when the economic situation such is, what exists a set of critical industries why these assets have to be protected? On the other hand, sale of assets to the Chinese companies will allow to keep workplaces and tax collecting. The USA and the EU, having settled options of rescue of economy, can appear before need of sale of productions soon.