There are many wealthy people in China that desire to move their wealth out of China. The Chinese Government makes moving money to Europe and America very difficult. In spite of the difficulties there has been a flight of capital out of China. The old adage is, "you can follow your money, but your money can't always follow you." China is emerging as a stable country but with a weak court system and millions of angry protesters a looming possibility people who have grown significant wealth in China are diversifying their risk by getting their funds to America.
Think about any public company that can benefit from the inexpensive Chinese labor pool. The public company establishes a Chinese entity to conduct business in China. They provide a platform for the American public company to build value to their company's assets in America by using Chinese labor to enhance the those assets. Investor funds are deposited into the Chinese company and used to pay for labor and materials in China. Shares are issued in America to the Chinese investor.
If the shares are traded on Nasdaq or the New York Stock Exchange those shares can be deposited at any brokerage house and borrowed against. Effectively the Chinese Investor has moved wealth to America.
This should all be done with attorneys to make sure it is done in full compliance with all applicable laws but the mechanism is fairly simple to use. American public companies can tap into investment from China and the Chinese can move their wealth to a country where courts uphold rights. What has made America great are situations like this where everybody wins.
