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August 05, 2005China Subsidizing Its EnemiesLarry Kudlow details the budding Pacific Anglospheric Alliance (PacAngloPac?) between the US and India, especially the business aspects. I think he's ignoring a possible stock market bubble there, but leave that aside. He points out that India may be on the verge of relaxing foreign direct investment restrictions, and that the US would probably be the main beneficiary of that. Now, for all of you who don't like economic globalization so much, consider this. US corporations, flush with cash, need places to invest. Much of their cash is coming from low interest rates, subsidized by Chinese investors. Or by Chinese FDI. If we turn around and invest heavily in India, that means that, essentially, Chinese money is going into India. How long will it be before we start seeing articles asking why, oh why, the Chinese are subsidizing the development of their enemies? Heh. Posted by joshuasharf at August 5, 2005 11:00 AM | TrackBack |