In the world of politics, it is helpful to by a little cynical even though you want to accept the information at face value. When a person becomes a leader of a country, one of the many duties is to ensure the economy works well for the people of the country. To do this, the person meets with influence makers and decision makers who can direct investment into their country. The leader must put on the face of being independent and having a variety of options, but in reality, the country is going to be in the US, Russia or China orbit. One or more of those countries is willing and able to direct infrastructure resources and all countries hope the host country citizens will buy the consumer goods made by their country.

In an article from the Associated Press, Premier Xi Jinping met with US business leaders to discuss ongoing US investment into China. Premier Xi emphasized the mutually beneficial economic ties between the 2 countries and encouraged the US to continue to invest.

To be cynical, China’s economy is a tailspin and needs all the assistance it can to stop the decline and grow again. Part of the reason was 1/3 of the Chinese economy was based on real estate value increasing and at the moment it is decreasing.

The people the Premier was meeting with is the US-Chinese Business Council, whose leaders include Stephen A Schwarzman, the President of Blackstone, Tim Cook of Apple, and Craig Allen of the Washington based Council. The Council noted it was honored to have a dialogue with the country’s top leader to discuss our concerns over the decline in trade, investment, and business confidence as well as our desire to help improve engagement and commercial exchange between the 2 countries.

Linking to dividend paying stocks, the President of the company because of the reach of the company tends to automatically sit on various Boards and Councils designed to ensure access for the company. Some of the Boards and Councils will be to ensure good relations with political leaders, if the need arises for their company, having a relationship and access is a good thing no matter what political stripes the person is. In the case above, you need to be cynical to say China’s economy is not growing, China needs help, or they are open to new investments. Perhaps the company wants to increase its market share in China, this maybe a good time to do it. In an economic downturn, part of running a profitable business means it can make investments with extra government incentives to lower the risk to itself. Eventually that will be good for shareholders.

There are more questions than answers, till the next time – to raising questions.