How are issues ranging from cyberattacks to a volatile economy impacting Affluent investment in China?
One of the takeaways of Chinese President Xi Jinping’s first U.S. state visit was an announced “common understanding” on curbing economic cyber espionage. “It has to stop,” President Barack Obama announced at a joint news conference with Xi on Friday in the White House Rose Garden. While he reported “significant progress” had been made on the issue, he added that U.S. sanctions could be imposed on Chinese hackers.
But as an issue of concern related to China, cyber-security ranks third among Americans, according to a new Pew Research Center study. Nearly nine-in-ten survey respondents asked to rate the seriousness of perceived problems in America’s relationship with China cited the large amount of American debt held by China, with two-thirds calling this issue “very serious.”
Six-in-ten consider the loss of American jobs to China to be very serious, along with 29 percent who call the problem “somewhat serious.”
More than half (54 percent) call cyberattacks from China “very serious.” Significantly, the Pew survey was conducted before revelations in June that U.S. federal workers had been targeted by cyberattacks that many experts believe originated in China.
China is an issue in the 2016 presidential race. Republican candidate and current frontrunner Donald Trump has cited the country repeatedly in his speeches More than three-fourths (77 percent) of Republicans respondents to the Pew survey say the large amount of U.S. debt held by China is a very serious problem, compared with 60 percent of Democrats. Republicans are also significantly more concerned than Democrats about six of the eight issues on the survey. The exceptions are human rights, where there is no significant partisan difference, and China’s impact on the environment, which generates more worries among Democrats, Pew reports.
Such issues have dampened enthusiasm among Affluent investors to invest in China. According to a new Spectrem Group study, The Investment Habits of Millennials (click here to preview or purchase this report), just 22 percent of surveyed young adults indicate an interest in investing in that country. In comparison, only 13 percent of Baby Boomers and 11 percent of seniors indicated an interest in investing in China.
Still, Millennials indicate a greater likelihood the will invest in China than they will in Europe (13 percent), Brazil (12 percent and Indian) and the United Kingdom and Japan (11 percent).
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.