In a recent survey conducted by the American Chamber of Commerce and the consulting firm Booz&Allen ten percent of multinational corporations said they were planning to relocate their manufacturing facilities from China to lower cost countries like India or Vietnam. This number, down from 17 percent last in last year’s survey, can be seen as a sign of multinational corporations’ commitment to China as an important production center and market in Asia.
China’s foreign exchange reserves might be used to support the country’s oil and gas companies in their pursuit of international mergers and acquisitions. According to a plan issued last week at a national work conference on energy China is planning to provide its oil and gas companies with low-interest loans and direct capital injections in order to help them expand their international operations. Resource and commodity companies worldwide are suffering under the recent drop in commodity prices. In dire need of capital, these companies are a preferred target for China’s oil and gas companies.
At the end of her China visit U.S. Secretary of State Hillary Rodham Clinton emphasized once more China’s importance for the U.S. and appealed for a continuing cooperation between the two countries. According to Mrs. Clinton both countries have vital interests in each other’s economic recovery. She urged China to continue its investments in U.S. treasuries and highlighted the interconnection between China and the U.S.