It is well known that the Asian giant exercises its diplomatic power through its reinvented “silk road”, a lobby of companies and investment funds abroad, buying state public debt “case Spain, United States”, forming part of shareholders in companies, until reaching direct investments in the countries “Africa case”.
We live in a moment that reminds us of the phrase of the French General who asked Napoleon to invade China and Napoleon’s response: “let China sleep, because when it wakes up the world will tremble.” And it’s likely the worst awaits England, because the Chinese have a special antipathy towards the British because of the harsh history that unites them.
This summer, a diplomatic altercation between London and Beijing over Hong Kong’s protests went unnoticed. The row escalated following statements by British Foreign Secretary Jeremy Hunt, who reiterated that there would be “consequences” if the Chinese government failed to comply with the agreements. A few months earlier China had expressed its anger at the presence of the British warship HMS Albion near a number of islands in the South China Sea claimed by Beijing, claiming that it was a provocation.
And what does Thomas Cook have to do with China? Well, the most strategic shareholder in the company was FOSUN, a Chinese fund that entered 2015 with a small shareholding, although it expanded its position in a staggered way to become the main partner of the company. This summer, the terms of a recapitalization plan were unveiled, which will involve a total investment of 900 million pounds (996 million euros). FOSUN International would contribute half this amount, focused on the tour operation business, in which it will buy a 75% stake. All was well until September 21 at Slaughter & May’s law firm in central London where representatives of Thomas Cook’s most important shareholders and creditors gathered to decide on the future of the world’s oldest tourism wholesaler. There the Swiss-led tourist group Peter Fankhauser made a last-minute request of 200 million pounds (226 million euros) that caused FOSUN to rise from the negotiating table and drop the largest British tourism group. The rest of the story is already known.
As the Chinese sage Confucius says, before embarking on a journey of vengeance, he digs two graves. The tomb of the strategic giant for English tourism is just a warning to “Johnson-Trump” duo and a reminder that China is the largest sovereign holder of U.S. public debt: $112 trillion in Treasury Bonds.
