A Beijing-based investment group is about to buy some very unique land. In fact, the Zhong Kun Group is buying a 300-square-kilometer tract of land in Iceland that sports “unique landscape[s], glacial rivers and world-renowned hot springs”[1]. The group expects to recoup its investment – and then some – by building a high-end resort in the area. The group is hoping to escape China’s strict real estate regulations by buying abroad and has emphasized that the purchase, which makes up 0.3 percent of the entire country of Iceland, is not politically motivated. The Icelandic government has said that the purchase “is in alignment with the government policy of increasing foreign investment in Iceland, of promoting Iceland as a tourist destination and (as well as) environmental.”
Huang Nubo, chairman of the Zhong Kun Group, emphasized that the purchase is a “private investment” and both parties hope that the move will help the country recover from its recent banking crisis and wrecked economy[2]. Skeptics however, point to a deep-water harbor near the tract of land and question the motives of the group[3]. Huang has said that if his motives “involved politics or any other background [than tourism]” he would not go to Iceland.
Do you think that Iceland should sell off such a large tract of land to any foreign investors?
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[1] http://www.china.org.cn/video/2011-09/05/content_23354190.htm
[2]http://www.google.com/hostednews/ukpress/article/ALeqM5hTK5lf_vIA4azuUud56dhsD1SJpQ?docId=N0158071314959471674A
[3]http://www.google.com/hostednews/ukpress/article/ALeqM5hTK5lf_vIA4azuUud56dhsD1SJpQ?docId=N0158071314959471674A
I read a prophecy about 40 years ago, it said “Beware the Yellow Peril”
Why not, I am sure many more properties in Iceland are already owned by foreign investors. Why only question the Chinese. The Chinese is a global play. The whole world buys their output, why do we question when they want to buy something. Ask yourself this, if you think nothing of this transaction if a European or North American entity is the buyer, but you are concern to hear an Asian entity as the buyer, then your thinking is behind the reality of the times.
The Chinese always have an alternate motive in mind for anything they do. The Oriental mind is wired a little differently than the typical “instant results” mindset of the Western mind. I know this after having spent some considerable time in the orient. The Chinese are of the patient long term mindset that so often escapes the Westerner. They see things in more of a “chessboard” mode, if you will, that those of us in the “West.” The point I am making here is simply that there is more than “meets the eye” in this transaction. The Chinese are looking to the future development of this port, make no mistake about this. They claim to be a “private” group of investors. However, their interpretation of “private” may differ from what we assume to be a “private group.” In other words, the Chinese Government may be involved in this transaction in some manner, such as financing. I am certain the Government of Iceland does not view this transaction with the same set of eyes as the Chinese. Lesson: “Western” seller be aware!
I think Iceland should go ahead with the transaction to whoever can pay the price and be able to perform their promise to develop the area into the type of resort that is good for Iceland and the investors with consideration for wildlife and other environmental protection – this last aspect has to be monitored by Iceland government. Who are we, as Americans, to dictate to other sovereignty what they wish to accomplish for their own country?