The tremors from the United States’ financial earthquake are being felt all the way to China. This week’s dramatic events on Wall Street have been the talk of the town in Beijing, and as with most things in this country the reaction has been varied and complex. Much of the official newspaper and television coverage has highlighted what some view as American greed and mismanagement (stay tuned to this blog for some very interesting observations from one of China’s top banking regulators). However, media reports are flying that behind the scenes Chinese officials may be poised to take an even bigger stake in troubled U.S. investment banks, in effect doubling down on their ability to weather this storm.
The real eye-opener for me though was my conversation with a mid-level manager at the Chinese web site SOHU.com. Upon learning I was a American financial journalist, he peppered me with questions about the crisis and its implications. When I asked him why he was so interested in financial events half a world away, he explained he and his wife both worked at SOHU.com and were both heavily invested in the company’s stock, which is traded on the NASDAQ. Like so many U.S. investors, he has watched his savings crumble as financial concerns rock the stock market. It was clear from our conversation this guy wasn't interested in laying blame, in fact he was very hopeful that the U.S. will be able to find some way to resolve this situation quickly so he could move on with his life and save for the future. For all our differences, when it comes to this latest crisis Americans and Chinese are riding in the same boat.
