Friday, December 14, 2012

China Railway Co. to build houses in San Francisco

Oh, this is charming.

The manufacture this blog tells us:
The Wall Street Journal reports that Lennar Corp., one of America’s largest home builders, has secured a $1.7 billion loan from China Development Bank (CDB) to build two housing development projects on the San Francisco Bay. 
With access to Beijing’s massive foreign currency holdings, China’s state-owned banks fund infrastructure projects around the world. But dealings with these banks often come with a noteworthy requirement: A Chinese state-owned contractor must get a piece of the pie. 
That’s the case with Lennar’s dealings with the CDB. As a condition of access to financing, Lennar must employ a Chinese construction contractor for some – if not all – of the work on both projects. In this case, the frontrunner for the bid is the state-subsidized China Railway Construction Company.
A Chinese firm is already building the bridge between Oakland and San Francisco.

Geez, you'd think government intervention would be stifling Chinese commerce. That's the way it's supposed to work, isn't it?

And the tooth fairy is real, right?