| Chinese firms own just 6% (data for November 2010) of |[pic] |
|global investment in international business. Historically, top dogs | |
|have had a far bigger share than that. Both Britain and America | |
|peaked with a share of about 50%, in 1914 and 1967 respectively. | |
|China’s natural rise could be turbocharged by its vast pool of | |
|savings. Today this is largely invested in rich countries’ | |
|government bonds; tomorrow it could be used to buy companies and | |
|protect China against rich countries’ devaluations and possible | |
|defaults. | |
Chinese firms expand their business for the usual reasons: to acquire raw materials, get technical know-how and gain access to foreign markets. But they are under the guidance of a state that many countries consider China as strategic competitor, not an ally. In fact, China is miles away from posing a threat: most of its firms are only just finding their feet abroad. Even in natural resources, where it has