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Chinese Buyers Lead Foreign Investment in US Housing Market (+video)

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As the U.S. housing market slowly starts to recover, foreign investment is helping it along.

According to the National Association of Realtors, non-American buyers accounted for $82 billion in home sales last year. More than $7 billion of that is by the Chinese, who are now the second largest foreign home purchasers after Canadians. They’re buying high-end, multimillion-dollar homes from California to New York and paying cash.

“They’re probably the top 1 percent of the Mandarin speakers that are coming from China,” said Brent Chang, a Coldwell Banker realtor in Southern California. “They’re really the people who have their own businesses or maybe were part of the government.”

Some of these homes are specifically catered to Chinese buyers. Fox News visited a home listed at $8 million in Pasadena, Calif., that had two kitchens, the smaller one had ventilation for the cooking for aromatic or “stinky” foods like fish. It also has a lower level in-law suite and even a koi pond.

“People from China do a lot more business in their homes so they want their homes to really scream that they’ve made it and they’re successful, ” said Chang.

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Former GM Engineer, Husband Convicted of Stealing Trade Secrets for Possible Use in China

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DETROIT (AP) — A former General Motors engineer with access to the automaker’s hybrid technology was convicted Friday along with her husband of stealing trade secrets for possible use in China.

Shanshan Du won a transfer within GM in 2003 to be closer to the technology and then copied documents until she accepted a severance offer and left the company in 2005, prosecutors said.

Du, 54, and Yu Qin, 51, were found guilty Friday by a federal jury in Detroit after a trial that lasted weeks. Qin also was convicted of wire fraud and attempting to obstruct justice by shredding documents. They shook each other’s hand after the verdict but declined to comment, as did their attorneys.

Du faces up to 10 years in prison, while her husband faces up to 30. No sentencing date has been set.

Prosecutors told jurors that GM trade secrets were found on at least seven computers owned by the Oakland County couple. The government doesn’t believe the information ever made it to China, although Qin had set up his own company, Millennium Technology International, and claimed to have made contact with GM competitors overseas.

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U.S. Treasury Declines to Name China Currency Manipulator

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China isn’t a currency manipulator under U.S. law, though the yuan “remains significantly undervalued” and needs to rise further, the Treasury Department said.

China “has substantially reduced the level of official intervention in exchange markets since the third quarter of 2011,” the Treasury said in a statement accompanying its semi- annual currency report to Congress yesterday. The yuan has gained 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010, the Treasury said.

“It appears that the strategy of the last two administrations to use diplomacy rather than confrontation in dealing with the yuan’s value is having some positive results,” William Reinsch, president of the National Foreign Trade Council, a Washington-based business group, said in an e-mail after the report. “There is clearly room for further appreciation, however.”

In declining to brand China a manipulator, the Treasury cited the reduced intervention and “steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange-rate regime.” The U.S. hasn’t designated another nation since 1994, when it named China.

Critics of China’s exchange-rate policies, including former Republican presidential candidate Mitt Romney, say the nation deliberately suppresses the value of its currency, making its goods cheaper in overseas markets and costing jobs in the U.S.

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Corporate Tax Cuts Enacted: Economic Stimulus Old-School-Capitalist Style . . . in China!

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photo credit: wisegie

China’s new round of structural tax cutting is likely to benefit more than 900,000 enterprises nationwide, according to a working conference held here on Monday to discuss the country’s piloting of replacing business tax with a value-added tax (VAT).

About 710,000 enterprises have been covered by the tax-cutting program, and another 200,000 will be included starting from Dec.1 this year, according to the meeting jointly held by the Ministry of Finance and the State Administration of Taxation.

Shanghai piloted the program on Jan. 1 this year in an effort to decrease the overall tax burden and boost the transportation and service sectors. The pilot was then expanded to provincial regions including Beijing, Guangdong and Zhejiang later this year . . .

The reform has effectively promoted the growth of tertiary industry, especially the service sector, and encouraged the development of small and micro-sized enterprises, those present at the meeting agreed.

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China Lands J-15 Jet on Liaoning Aircraft Carrier

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China has successfully landed a jet fighter on its new aircraft carrier for the first time, officials say.

A Chinese-made J-15 fighter landed on the 300m (990ft) former Soviet carrier during recent exercises, China’s defence ministry said on Sunday.

The Liaoning, China’s first aircraft carrier, entered into service in September.

China says the vessel has had extensive sea trials and will increase its capacity to defend state interests.

Analysts say the aircraft carrier will allow Beijing to help project its military might in territorial disputes.

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Report: China Eyeing Strategic Atlantic Island Base to Threaten American Mainland

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On June 27, a plane carrying Wen Jiabao made a “technical” stop on the island of Terceira, in the Azores. Following an official greeting by Alamo Meneses, the regional secretary of environment of the sea, the Chinese premier spent four hours touring the remote Portuguese outpost in the middle of the Atlantic Ocean.

Wen’s Terceira walkabout, which followed a four-nation visit to South America, largely escaped notice at the time, but alarm bells should have immediately gone off in Washington and in European capitals. For one thing, Wen’s last official stop on the trip was Santiago, the capital of Chile. Flights from Chile to China normally cross the Pacific, not the Atlantic, so there was no reason for his plane to be near the Azores. Moreover, those who visit the Azores generally favor other islands in the out-of-the-way chain.

Terceira, however, has one big attraction for Beijing: Air Base No. 4. Better known as Lajes Field, the facility where Premier Wen’s 747 landed in June is jointly operated by the U.S. Air Force and its Portuguese counterpart. If China controlled the base, the Atlantic would no longer be secure. From the 10,865-foot runway on the northeast edge of the island, Chinese planes could patrol the northern and central portions of the Atlantic and thereby cut air and sea traffic between the U.S. and Europe. Beijing would also be able to deny access to the nearby Mediterranean Sea.

And China could target the American homeland. Lajes is less than 2,300 miles from New York, shorter than the distance between Pearl Harbor and Los Angeles.

Lajes is certainly the reason Wen went out of his way to win friends in Terceira. For years his country has been trying to make inroads into the Azores and waiting for opportunities to pounce. There is nothing the Chinese can do if the U.S. stays, but Pentagon budget cutters, according to some observers, are planning to make Lajes a “ghost base.”

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New Chinese Leader’s Close Ties to People’s Liberation Army Could Have Implications for US

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BEIJING — On one of his many visits abroad in recent years, Xi Jinping, the presumptive new leader of China, met in 2009 with local Chinese residents in Mexico City, where in a relaxed atmosphere he indirectly criticized the United States.

“There are a few foreigners, with full bellies, who have nothing better to do than try to point fingers at our country,” Mr. Xi said, according to a tape broadcast on Hong Kong television. “China does not export revolution, hunger, poverty nor does China cause you any headaches. Just what else do you want?”

Mr. Xi is set to be elevated to the top post of the Chinese Communist Party at the 18th Party Congress scheduled to begin here on Nov. 8 — only two days after the American election. He will take the helm of a more confident China than the United States has ever known. He will be assuming supreme power in China at a time when relations between the two countries are adrift, sullied by suspicions over a clash of interests in Asia and by frequent attacks on China in the American presidential campaign.

In the last four months, China has forged an aggressive, more nationalistic posture in Asia that may set the tone for Mr. Xi’s expected decade-long tenure, analysts and diplomats say, pushing against American allies, particularly Japan, for what China considers its territorial imperatives. The son of a revolutionary general, Mr. Xi, 59, boasts far closer ties to China’s fast-growing military than the departing leader, Hu Jintao, had when he took office. As Mr. Xi rose through the ranks of the Communist Party, he made the most of parallel posts in the People’s Liberation Army, deeply familiarizing himself with the inner workings of the armed forces.

Even if Mr. Xi does not immediately become head of the crucial Central Military Commission as well as party leader, he will almost certainly do so within two years, giving him at least eight years as the direct overseer of the military.

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Insecure Obama, Insecure World

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The United States has had good presidents and bad, but it has never had a leader who came to a debate on national security with so much insecurity. It was a small petty man who sat on the other side of the screen, alternately smirking and scowling, grinding his teeth and launching attack after attack instead of finally taking the opportunity to set the record straight with the American people.

Barack Obama came to the debate with a roster of prepared speeches, few of them about foreign affairs and most of them about the economy. Even while his Secretary of Defense has given an unprecedented order to top military officials to stonewall the congressional investigation into Benghazigate, even as it has become known that his administration watched four Americans be murdered in real time and did not lift a finger to save their lives, talking points prepared by highly paid speechwriters fell out of his mouth assuring the American people that everything was going well. There was nothing wrong except for a few non-optimal bumps in the road made up of dead Americans.

Anyone listening to Obama would have to conclude, like Voltaire’s Pangloss, that we truly live in the best of all possible worlds. During the Bush administration, liberal pols like Obama liked to claim that they were part of the reality-based community. But as Calvin of “Calvin and Hobbes” said, “I’m not in denial. I’m just very selective about the reality I accept.” Obama would appear to have joined Calvin’s selective reality community.

Instead of discussing foreign affairs and national security, the Contender-in-Chief did his best to divert the debate with a talking point that he called “Nation Building at Home.” “Nation Building” is usually a term reserved for the reconstruction of backward or broken nations. That Obama insisted on applying it to the United States was telling, but even more telling was that his big idea for the debate was not only a distraction but a call to repeat the same disastrous stimulus and shovel-ready project boondoggles that had dug the country 16 trillion dollars into debt.

Obama’s idea of a foreign policy agenda is to borrow trillions of dollars from China to invest in green energy and teachers unions while calling it nation building. Left unasked was the question of what nation would we be building—America or China?

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House Intel Committee: China’s Largest Phone Equipment Maker Could Imperil US Telecommunications Infrastructure

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U.S. companies should avoid business with Huawei Technologies Co., China’s largest phone-equipment maker, to guard against intellectual-property theft and spying, the U.S. House Intelligence Committee chairman said.

U.S. companies considering purchases from Huawei should “find another vendor if you care about your intellectual property, if you care about your consumers’ privacy, and you care about the national security of the United States of America,” Representative Mike Rogers told CBS News’s “60 Minutes,” according to a CBS release about an interview set to air tomorrow.

Rogers, a Michigan Republican, and the committee’s top Democrat, Maryland Representative C.A. “Dutch” Ruppersberger, are preparing to issue a report Oct. 8 on their yearlong investigation of Huawei and ZTE Corp. (763), another Chinese phone- equipment maker. The lawmakers have been looking at whether the companies’ expansion in the U.S. market enables Chinese government espionage and imperils the U.S. telecommunications infrastructure.

“Huawei is a globally trusted and respected company doing business in almost 150 markets with over 500 operator customers, including nationwide carriers across every continent save Antarctica,” William Plummer, a Washington-based spokesman for Huawei, said in an e-mail. “The security and integrity of our products are world proven. Those are the facts today. Those will still be the facts next week, political agendas aside.”

Susan Phalen, a spokeswoman for the committee, didn’t immediately respond to a request for comment.

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Big U.S. Fleet Nears Disputed Islands, But What For?

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It’s probably just a coincidence; no need to worry yet. But the U.S. has quietly assembled a powerful air, land and sea armada not far from where Japan and China are squaring off over disputed islands in the East China Sea.

Two Navy aircraft carrier battle groups and a Marine Corps air-ground task force have begun operating in the Western Pacific, within easy reach of the Senkaku Islands. That’s where Japanese and Chinese patrol boats are engaged in an increasingly tense standoff.

Chinese vessels have repeatedly entered territorial waters around the small islands in recent weeks and Coast Guard vessels from Japan and Taiwan fired water cannons at each other last week. The islands are controlled and administered by Japan, but claimed by both China and Taiwan.

No warships have been directly involved in the confrontations, so far. But China has vowed to continue sending patrol vessels into territorial waters and Japan has assembled scores of Coast Guard vessels to “defend” the islands.

The U.S. hasn’t taken sides in the ownership dispute, and Secretary of State Hillary Clinton has called for “cooler heads” to prevail. Nonetheless, U.S. officials have stated clearly that the Senkakus fall under the U.S.-Japan security treaty, which would require the U.S. to come to Japan’s aid in case of attack.

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