Bargain Buying Amid the Pandemic !

By CryptoUser | EconomyNext | 25 Apr 2020

As the world is unified to fight against the COVID-19 pandemic, world leaders are also honing in on reviving local economies, the path to resurgence may not be an easy one. This is now getting more evident for US and EU leaders as they start criticizing Chinese companies.

Nations such as Germany and Sweden are concerned as companies hit and weakened by the outbreak could be easy targets for predatory lenders and buyers, especially, Chinese companies.

Germany and other EU nations are looking to secure there home corporations, worried by a possible economic attack by china, approving cabinet legislation making it easier to authorities to prevent any hostile takeovers of strategically important companies.

Another measure includes bringing production back to Europe. Ex: Medical Equipment.

Spain, Italy and Australia are echoing those same concerns.

Spanish Prime Minister stating,

“We are going to block foreign companies from taking control of strategic Spanish companies by taking advantage of the share price collapse.”

China has invested heavily in Italy after United Kingdom and Germany, Italy is a top recipients of Chinese FDI (Foreign Direct Investments). In 2019, Chinese investment in Italy reached $17.4 billion since the year 2000 and while the peak was in 2014 – 2015.

Australian Home Affairs minister says he thinks there will be a reset how we would interact with China and calls for more transparency in areas such as foreign interference and Cyber space.

On the other hand, as China ships medical equipment to other countries, Swedish Foreign Minister states that she welcomes the gesture, but she believes there are political intentions behind the generosity.

In Britain, lawmakers says the British Government should do more to stop China buying technology and prevent the tech giant Imagination Technology from removing to China.

Meanwhile, in India, leaders are also clearly aware that the country’s economic slowdown has weakened home grown corporations. Ministry of Commerce in India has announced recently that any entities based in or tied to a country that shares the border with India would need government approval before investing in any Indian company.

Many countries are vigilant in protecting there homegrown entities because of events took place during the recession 2008-2009. During this period, China did heavily invest in the West, although it was not lucrative for China as they thought, because many companies went under anyway.

This time, things might be different as they might have learned their lessons from past experiences.

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