China Contractors Go After Foreign Stimulus Funds.
by: Vincent Fernando September 06, 2009 | about: CWYCF.PK
After the creation of a massive construction industry in China, it appears this industry is exporting its services worldwide. Tax payer stimulus dollars doled out by other governments, ostensibly in the interest of the local people, are a prime target.
With many countries in the world adopting stimulus plans to drive demand, China has been scrambling for these public spending dollars. And it is well placed to do so...
Services revenue from overseas amounted to $32.2 billion, up 52 percent from last year, outpacing the average growth of 30 percent over the past few years. Chinese companies signed new contracts worth $64.6 billion, an increase of 38 percent from last year...
Chinese construction companies were the biggest beneficiaries. China Railway Construction (CWYCF.PK) said the value of newly entered overseas contracts surged 98 percent in the first half, representing one fifth of the total new contracts signed. The success of Chinese contractors is not limited to emerging countries. China’s Gezhouba Group is involved in Australian mining projects. An aircraft technology company has got a big contract for wind power projects in the United States. And a Chinese contractor won a bid to build the Hamilton Bridge in New York.
I'm not against these companies going after foreign contracts. I just think this highlights how stimulus spending might not be going to the people it's intended to.
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