Fosun International, a conglomerate privately owned company in China, has made plans to invest in various businesses in the United States, and in Europe. According to the article Fosun International is investing in clothing, pharmaceuticals, financial services, and retirement homes along with many others. Investing in these companies will bring on strong growth within the Chinese markets and create a stepping stone out of the current financial crisis. One company that has a business venture with Fosun International is Financial Prudential, a US insurer, who plans to sell life insurance products in China late next year. With China having the lowest amount of insurance based citizens this brings a new market into China that will definitely see the effects of growth in this competitive market. Fosun is creating more opportunities to bring money in the Chinese markets therefore uplifting the current situation in which many citizens are losing jobs and having to give up future plans of any kind of advancement. Guo Guangchang, the founder and Chairmen of Fosun, made the comment that the latest economic crisis provides new opportunities for his company to make more such deals with foreign brands, high technology companies, financial services firms and others with specialist expertise or technologies, that need Fosun’s help to make money in China.
As we can see today globalization has had negative effects on economies around the world. One such situation was when Chinese citizens were losing jobs due to the factories shutting after the upkeep of these factories proved to be an investment that too costly for the companies that chose to globalize. In turn this created a lot of unemployed citizens which in turn affected markets all over the world. Products weren’t being made with labor as cheap as before which caused prices to go up. This financial crisis has been seen to affect the world with its financial decline. With this being said, Fosun International is making huge efforts to bring money into the Chinese markets. Bringing money into the chinese markets will create more jobs for Chinese citizens which will in turn put more money in these businesses that have chosen to let Fosun invest in their companies and expand their business into other markets. These businesses will give Chinese citizens an opportunity to spend more money, make more money and create an economic turn within their country as well as in other parts of the world. With the economies in today’s society being so interlinked the business investments made with Fosun and the other companies can truly make a difference in the financial crisis by putting more money into the economies as they are at their lowest point financially.
Link to article: http://www.ft.com/intl/cms/s/0/23f9ccb6-df89-11e0-845a-00144feabdc0.html#axzz1Y3nkqU8O
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