C hina is undeniably a global economic powerhouse. While the global financial crisis was a catastrophe for most economies, it was more an opportunity than a challenge for China.

The Asian gaint too was hit by the crisis and its GDP growth rate slipped, but China still was largely unaffected. Backed by its huge foreign exchange reserves, China first announced a massive stimulus plan to stir up its domestic economy and then began to focus on sealing deals that entailed natural resources -- oil and metals, primarily. The private sector in China also decided to make hay while the sun shone and went on a major worldwide buying spree.

Times were ugly. Companies, especially in the West, were finding it difficult to keep their head above the water: their business were drying up as customers vanished and with banks going belly up by the dozen, credit was impossible to get hold of.

These beleaguered companies were like beacons to the prowling Chinese. They began to buy huge stakes into firms abroad, beating the competition hollow.

To be fair, China did not begin its acquisition binge only during the recession: it has been on a buying spree for almost a decade now.

Meanwhile, in a major shift in stance the United States is keen to allow Chinese investment into small and medium US banks.

America was earlier wary of investments from state-controlled Chinese companies. In 2005, the China National Offshore Oil Corp's $18.5 billion investment in the US oil company Unocal fell through as American lawmakers opposed the deal. But the current recession has changed all that.

America now realises that for its economy to come out of the crisis fully, foreign investment is badly required. Meanwhile, China with its $2-trillion foreign currency assets is on the prowl.

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