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Barack Obama

Barack Hussein Obama II, born August 4, 1961, is the 44th and current President of the United States, and the first black US president. He defeated Republican rival John McCain in the general election of 2008, and was inaugurated as president on January 20, 2009. Obama was named the 2009 Nobel Peace Prize laureate in October 2009. He was re-elected president in November 2012, defeating Republican nominee Mitt Romney. 

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ECONOMY

Obama’s claim US tops China as No 1 investment destination questioned

PUBLISHED : Wednesday, 29 January, 2014, 12:41pm
UPDATED : Thursday, 30 January, 2014, 2:42pm

Watch: President Obama claims US tops China as No 1 investment destination

US President Barack Obama proclaimed America had usurped China as the world's No 1 investment destination, a bold statement that left some economists scratching their heads.

The White House cited an AT Kearney survey as the basis for Obama's remark in his State of the Union address on Tuesday, noting the US topped the global consulting firm's list for expected foreign direct investment.

But the US ranks lower in other prominent surveys. Forbes' annual report on the best country to do business in put Ireland at the top, with the US at No 14, according to Politico's website. It also noted that the Milken Institute - which measures countries on 67 variables, including economic fundamentals and regulations - put the United States at No 22, behind Hong Kong at No 1.

Obama kicked off his speech with a list of his administration's economic achievements.

"Here are the results of your efforts: the lowest unemployment rate in over five years. A rebounding housing market. A manufacturing sector that's adding jobs for the first time since the 1990s. More oil produced at home than we buy from the rest of the world - the first time that's happened in nearly 20 years…," Obama said. "And for the first time in over a decade, business leaders around the world have declared that China is no longer the world's number one place to invest; America is."

The statement pacified some Americans' concerns in the past couple of years that "China is eating America's lunch", but it triggered a fierce debate.

RBS economist Louis Kuijs said despite the fact that the United States is emerging from the 2008 global financial crisis and is on track for an economic upturn this year, hurdles remain to making it the world's top investment destination.

"The US has made progress in economic recovery, which makes itself a more attractive place for investments," Kuijs said. "Many federal governments are quite keen on attracting investments and manufacturing as energy prices are lower."

However, lower energy costs, thanks to abundant supply of shale gas, are not the sole factor. There are others such as wages and availability of supply chain services, he said.

He added that the mainland's sophisticated and advanced logistics and supply chain network makes it more favourable in manufacturing activities.

"The supply networks were lost along with the demise of many manufacturing activities in the US many years ago," Kuijs said. "It is not easy to bring more jobs back to the US."

The US is more suitable for developing some petrochemical-related industries, he said.

US-based financial services firm Brown Brothers Harriman strategist Marc Chandler saw the US as the best investment location by some measures such as low unit labour costs, cheap energy, higher legal transparency and signs of manufacturing activities returning to the country.

"Many worried about a bubbling debt problem, quicker deterioration in demography, poor stock market and unstable money market in China," he said.

However, Wilson Tong , a professor with Hong Kong Polytechnic University's School of Accounting and Finance, has faith in China's attractiveness on the world's economic stage. He says because the US is unwinding its quantitative easing measures, capital is naturally flowing back to the country.

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johnyuan
The economic rise of China is not the result of a serendipitous weekend shopping trip by US. It is I believe by design with full cooperation by China. The objective is to pull China out from poverty and by and large the mission has completed. The grand plan is to move on to the next phase. US will tighten up by encouraging investment in the US. But there will be no shortage for US and even China to helping other countries which in need of economic development. The goal of a single world economy to me is gaining its foothold one step at a time. If WTO, IMF and the Trilateral Commission are working hard on the world single economy that could bring a lasting world peace, I would not get in their way even if China is no longer a foreign investment destination country as it once was.
.
Let even with China’s help moves on to lift out those countries in need.
.
lexishk
Erm, evidence of most people in China being out of poverty? Evidence of China helping other countries? Thought not.
johnyuan
To lex....
.
More or less evidence is bean counting. You are missing the point and seeing a forest for a tree. Take down your political glasses.
jeffrey.forsythe.52
How many of its own people has the blood-thirsty Chinese Communist Party murdered since 1949? Eighty million. What group is the brutal CCP trying to eliminate using torture, slavery, organ harvesting and murder? The tens of millions of gentle Falun Gong. How many human rights are there in Red China? None whatsoever. How many taxes do the rich pay? None. The poor? Twelve. This is the truth concerning the evil CCP. Truth that is kept from everyone in the West because of corporate greed. Even the weak U.N. appointed the heinous CCP a seat on its Human Rights Council this year. Shameful. Thank you for your concern.
P Blair
For the last 2 decades the USA have been focused of the "War on terror" spending trillions on it's wars on Iraq and Afghanistan. Then came the 2008 financial crisis when the poorly regulated US financial markets literally collapsed. After severe economic problems the hegemon is now trying to fight the "War on terror" on the cheap. The DOW because of 4 rounds of QE is now a bubble. When the bubble pops, most investments in the US will go sour again. Little wonder most US multinationals keep their trillions in cash outside the US. Obama haven't got a hope when the market crashes when QE ends.
ennoun
Obama won't survive the next election because under the US system a President can only serve two terms of four years and he is in his second term now. So he will be history when his current term is up. Good Bye.
mercedes2233
I am not concerned about what Obama says. Reality, facts and figures, history, will prove whether he is right or wrong. He may not survive the next election himself.
VicSexton
Stunning prediction there - remember where you read it first folks, Obama might not survive the next election!
VicSexton
racist pr*ck
raglan
Looks like someone has been blissfully brainwashed by a friendly FalunGong pamphlet, LOL....

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