What the World’s Emptiest International Airport Says About China’s Influence
A number of Chinese businesses are setting up 100%-Chinese factory compounds overseas. These compounds are located in a foreign country, but they are fully financed by Chinese, built by Chinese, employ only Chinese, have accommodation for the Chinese employees, have a completely sustaining internal economy where employees can buy food and entertainment and send mail, posts, banking, remittance, insurance, through Chinese companies etc. so that the Chinese never leave the compound and no-one else ever enters.<p>The reason for these factory-compounds is because China has challenging export quotas to places like the US and EU. But concentration of manufacturing know-how remains in China. The only way for these businesses to keep selling to high-value markets is to move manufacturing to another country where there is available quota. Although the goods are 100% made by Chinese, they are 0% made in China.<p>The Chinese government encourages business in this area because it is good employment for the Chinese. In turn, these businesses need better infrastructure in the countries they operate in. The infrastructural investment in these other countries is a wonderful side-effect that the government is happily playing up as part of its diplomatic strategy. When the textiles and the shoes and the fabrication factories are no longer making money, hopefully the ports, the trains, the roads, the power grid will continue generating interest income for the Chinese banks. And the recipient countries of these gifts, as it were, may extract benefit from this arrangement, eventually.