If you’re wondering what China plans on doing with that $2 Trillion plus in US dollar cash reserves, then this may be part of the answer:
General Motors (GM) has completed the sale of its Saginaw, Michigan-based Nexteer steering business to China-based Pacific Century Motors. Pacific Century Motors is a joint venture between Beijing-based auto components supplier Tempo Group and E-Town, the financing and investing arm of the Beijing municipal government.
None of the parties have disclosed the terms of the deal. However, some sources have revealed that the steering unit has been sold for about $450 million, making the biggest single investment in the global auto parts-making industry by a Chinese company.
Presently, Nexteerâ€™s headquarter and research and development facility in Michigan has about 3,000 employees.
In a similar move, Zhejiang Geely Holding Group bought Volvo cars from Ford in order to tap China’s high-growth auto market by acquiring modern, innovative technologies from the Swedish brand to strengthen its car lineup. In December last year, Geely also signed up Johnson Controls Inc. (JCI) as its global parts supplier.
Source: Seeking Alpha
If you were sitting on tons of soon to be hyperinflated US dollars you might also be considering moving into hard assets.
In addition to this recent buyout of a US manufacturing plant, China has been divesting some of their US dollar reserves into things like agriculture, industrial mines, precious metals mines and oil companies.
Sounds like they’re planning on the worth of the US dollar hitting the fan in the near future.
The strategy employed by the Chinese is one that those concerned with a depreciating federal reserve note may want to consider for their own personal asset diversification strategy. While us regular folks on the street may not be able to buy up company units in the multi-million dollar range, long-term food storage, precious metals, farming equipment, construction tools, self defense armaments, and skills training may be one avenue to take.
Sourced via Rense.com from Clark McClelland