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RE: LeoThread 2025-08-22 08:58

in LeoFinance2 months ago

purposes. One purpose is that organizational purpose. So your principal constituency, if you're the Chinese government, are state-owned enterprises. And state-owned enterprises make their budgets with reference to the GDP target, and they receive their investment capital with reference to the GDP target. The GDP target is measured against historical industry performance next to GDP. And then you sort of do a calculus and you figure out how much investment capital this company should get. So they're required to use that when they make their budget. So on one hand, it's a campaign tool. On the other hand, it's an external messaging tool for investors. So incoming capital investment and portfolio investment, whether it's FDI or portfolio, is very, very important to the Chinese economy. How are you going to get capital investment if your economy is only growing, say, 3% and Brazil's is growing 5%. So you've got to show growth that outstrips other developing countries. Is there FDI's (22/57)