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Well the incentive for China is simple since it uses all Chinese sources so the costs get higher than necessary but it's a foreign government flipping the bill
by Fuxy 8y ago
Well the incentive for China is simple since it uses all Chinese sources so the costs get higher than necessary but it's a foreign government flipping the bill so they don't care plus there is no competition.
The risks in Africa are great but when China has got your back as a company the math is different.
Not to mention we're talking Chinese concrete here that building will be turning to dust in less than 5 years they do the same in China after all and that's why it's not smart to buy property long term there although it's culturally necessary to be able to have a family there.
They may be building grand buildings but they use sub par materials so they are no build to last so I predict the debt will last longer than what they offered for it.
I works in China because the handle the supply and demand internally but it's a different story when they start exporting that.