The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Chamber of Commerce’s chairman has urged Bahamians to resist treating Chinese state-owned and private sector companies “with the same brush”, while acknowledging angst he potential threat to the country’s economic sovereignty from large-scale Chinese investments.

Gowon Bowe, speaking in the wake of last week’s announcement by multi-billion dollar Hong Kong-based conglomerate, Chow Tai Fook Enterprises (CFTE), that it is in talks to acquire the Baha Matr development, said the Bahamas has for years played host to Chinese investments- ranging from restaurants and food stores to Hutchison Whampoa.

That investment holding company, also based in Hong Kong, has interests in the  Freeport Container Port, the Freeport Harbour Company, The Grand Bahama Airport Company, the Grand Lucayan and the Sea/Air Business Centre.

“We have to be careful in our Bahamian context that we are not broad brushing the Chinese,” Mr Bowe told Tribune Business.

“While there can be concern over state-run enterprises and the level of control that they can have over our economy, private sector Chinese enterprises are no different than an American enterprise, a European enterprise or otherwise.

Their influence is driven by shareholders, shareholder value and, ultimately, returns. Those types of decisions don’t factor into policy-making as it relates to a state or foreign affairs level.”

Mr Bowe added: “We should not be painting everything with one brush. We must be very careful to distinguish between Chinese capitalist enterprises and Chinese state-run enterprises.

“I think many people have the impression that as long as it says Chinese investors, the Chinese are taking over. We have had Chinese investment in the Bahamas for many years. We have viewed them as individual investors in the country. We have to be careful not to confuse state recognised institutions with private institutions.”

Apart from CTFE’s prospective Baha Mar acquisition, a Chinese state-owned company, China Construction America (CCA), is also the owner of the British Colonial Hilton and The Pointe, the two properties that are the ‘anchors’ for downtown Nassau and Bay Street.

Should CTFE and the Cheng family close the purchase of Baha Mar from the China Export-Import Bank’s special purpose vehicle (SPV), Perfect Luck Holdings, then Chinese state-owned and private companies will own a significant portion of the Bahamas’ hotel plant and GDP.

As a result, some observers fear that Beijing will be able to exploit this ‘economic weight’ to further its geo-political aims and exert pressure on whoever the Government is in Nassau.