China: We’re just trying to learn the rules of the game

Poor little guys…fraud isn’t their fault, they just don’t know any better…

DAVOS, Switzerland (AP) — Chinese investment abroad is drawing scrutiny as global leaders increasingly look to China to prop up the world economy, even though some remain wary of the country’s dominance.

The head of one of China’s biggest private equity firms said at the World Economic Forum on Thursday that foreign prejudice about Chinese investment is unfair and that Chinese investors are still learning a game that much of the world has been playing for decades.

With China’s “state capitalism” booming and Western economies lagging, business and political leaders also discussed the prospects for democracy worldwide, at an Associated Press debate.

Attention at the invitation-only gathering in the Swiss Alps turned Thursday to China, and how and whether it could help developed economies in Europe and the United States avoid new recession.

Chinese companies and government funds have been using vast reserves of cash to buy up foreign companies and invest in foreign government bonds in recent years. But with billions of dollars in Chinese investments pouring into their countries, some governments have accused China of seeking to exploit the economic weakness of others to grab valuable natural and technological resources at rock bottom prices.

President Barack Obama’s administration also has repeatedly accused China of breaking global trade rules by giving unfair protection to its companies and domestic workers.

“The vast majority of Chinese companies are trying to follow the rules as they understand it,” said John Zhao, CEO of Hony Capital. “But many Chinese companies are still trying to learn the rules.” His company controls PC maker Lenovo, which bought IBM’s computer division in 2005.