Beijing is using its accumulation of billions of American dollars to step up its investments around the globe. In the past year, Chinese acquisitions in the U.S. have ranged from a relatively obscure theater in Branson, Mo., to stakes in such famous brands as Coca-Cola and Johnson & Johnson.

China’s huge stockpile of dollars stems in part from Americans’ enormous purchases of relatively inexpensive Chinese manufactured goods and the significantly smaller volume of U.S. exports to the Asian country.

By recycling much of its dollar trove over the years back to the United States with the purchase of U.S. government debt, China has in effect helped Washington finance its deficits.

Now, Beijing is branching

out. The country’s direct investments overseas rose 6.5 percent in 2009 to $43.3 billion — despite a global slump in such investments — and could jump to $60 billion this year, Chinese state media reported last week.

Formal estimates of Chinese investments in the U.S. last year, excluding bond purchases, range from $3.9 billion — a figure put out by New York research firm Dealogic — to $6.4 billion, a number that comes from Derek Scissors, a Heritage Foundation research fellow who tracks China’s global transactions.

The real number could be even higher, Scissors says. In any case, the total is up sharply from several years ago, when Chinese investments hardly registered a blip on U.S. financial radar screens.

One goal of the increased investment in the U.S., led by the government’s vast sovereign wealth fund, is to buy assets while prices are depressed.

The strategy also seeks higher earnings from Beijing’s pile of assets denominated in foreign currencies, which is estimated at $2.5 trillion and mostly held in low-interest U.S. government securities and other low-risk, dollar-denominated investments. Chinese officials worry that a weakening dollar will erode the value of these holdings.

A sign that Beijing is acting on that concern came last week when the U.S. government reported that Chinese holdings of Treasury securities slid to $894.8 billion in December, down 3.7 percent from November and the lowest level since May.

Even at their increased level, Chinese investments last year in U.S. companies and property used up only a speck of Beijing’s foreign reserves — and, according to Dealogic, accounted for just 3 percent of total foreign investments made in the U.S. last year.

Although the injections of cash from overseas are welcomed by many U.S. companies and communities, the step-up in Chinese purchases comes against a backdrop of rising tension between Washington and Beijing. The two superpowers have traded tough words over China’s currency policy, U.S. arms sales to Taiwan and President Barack Obama’s meeting last month with the Dalai Lama, not to mention disputes over global climate policy and Google’s bid to challenge government censorship.

"Now that we’re getting a protectionist push (in the U.S.), you’re going to see hostility toward Chinese investments," Scissors said.

U.S. lawmakers agree that political heat will increase on China to loosen its grip on the value of its currency and open its markets.

"Absolutely, China’s going to have to give and make more movement," said Rep. Adam Smith, D-Wash.

Beijing hasn’t forgotten what happened in the summer of 2005 when state-controlled oil company CNOOC Ltd. dropped its bid to buy El Segundo, Calif.-based Unocal Corp. after intense opposition from lawmakers who cited concerns about U.S. energy and economic security.

Chinese investors retreated from the U.S. market for much of the rest of 2005 and 2006, focusing instead on securing oil and natural resources in Africa, Australia and elsewhere.

Since then, Chinese investors have increasingly sought service companies. The largest Chinese investments in the U.S. have come from state-owned firms, primarily a $300-billion fund known as China Investment Corp. It initially targeted well-known financial companies, spending billions to buy stakes in private equity giant Blackstone Group and investment bank Morgan Stanley.

But after getting burned by the financial crisis that emerged in 2008, the sovereign wealth fund has been shifting to real estate.

Its investments in the past year have included hundreds of millions of dollars in real estate-related funds managed by Oaktree Capital of Los Angeles, Goldman Sachs Group Inc. and BlackRock Inc.

The move into real estate appeared to be motivated by bargain prices. "In the past year, the U.S. real estate market seemed to have hit bottom and signs of recovery were obvious," said Mei Xinyu, a researcher at the Ministry of Commerce in Beijing.

China’s growing investments should be viewed not as an effort to exert influence in the U.S., Mei said, but rather as an attempt to do some American-style business. "There’s a saying in America, ‘Business is business,’" he said. "People should not politicize business activities."

Chinese officials are mindful of the backlash Japanese investors endured two decades ago when they bought, at the height of Japan’s real estate boom and ascendance in the global economy, landmark properties in the U.S., including Rockefeller Center in 1989 and Pebble Beach Golf Course in 1990.

Private Chinese investors have begun to get into the action but, according to analysts, have generally been involved in small transactions, buying houses for their families and investing in factories and other facilities to be closer to the North American market.

Chinese real estate acquisitions to date have hardly been trophy properties. In December, a Beijing-based performing arts company took ownership of the White House Theatre — built to look like it belongs on Pennsylvania Avenue in Washington instead of in Branson, a popular tourist destination in the Ozarks. The China Heaven Creation International Performing Arts Co. paid $3.5 million in cash for the property, said Pam Critchfield, a marketing consultant for the theater.

In a deal announced in December, Shanghai Jin Jiang International Hotels — part of a big state-owned company that owns hotels and travel operations in China — formed a 50-50 joint venture with Thayer Lodging Group of Annapolis, Md., to buy Interstate Hotels & Resorts. Interstate, based in Arlington, Va., manages 232 properties in the United States and elsewhere. Interstate valued the transaction at $307 million.

Chinese companies have learned that allying with partners tends to draw less attention, said Wenran Jiang, a China expert at the University of Alberta who has studied Chinese investments around the globe.

When multiple parties are involved in a deal, he said, the Chinese buyer’s stake gets diluted. "So you can’t report that the Chinese are taking over."

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The Matthews-based discount retailer reported revenue of $1.99 billion a year earlier.

Sales at stores in operation for at least a year increased 3.6 percent in the latest fiscal quarter.

Family Dollar says it expects its second-quarter earnings to range between 75 cents and 80 cents per diluted share, up from 60 cents per diluted share in the second quarter of last year free credit score online. The company will report its second-quarter financial results on April 7.

As of Feb. 27, Family Dollar (NYSE:FDO) operated 6,689 stores in 44 states.

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Editor Neil Westergaard won two first-place prizes for his weekly columns in the Journal, one for serious column writing and the other for humorous columns.

The Journal staff received first-place honors for headline writing, while Karl Wimer took top prize for editorial cartoons.

And the newspaper's production department won first place for creating the year's best advertising campaign.

Other awards to the Journal staff Saturday:

• Best news story, second place ― Ed Sealover paydayloans.

• Best series of articles, second place ― Bob Mook, Neil Westergaard.

• Best real estate ad, second place ― Ashley Davis.

• Best series, third place ― Bob Mook, Cathy Proctor, Noelle Leavitt.

• Best special section, third place ― Greg Avery, Alisa Hatcher, Kathleen Lavine, Boots Gifford.

The Journal was judged alongside other weekly newspapers. The contest period covered Sept. 1, 2008, through Aug. 31, 2009.

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Among the postponements: the opening of the Lourdes emergency department at the Deborah Heart and Lung Center in Browns Mills, N.J. Planned for Thursday, it will now take place at 10 a.m. Saturday.

Meanwhile, the Salvation Army of Greater Philadelphia postponed a benefit for its Soups On! culinary job training program that had been scheduled for Thursday until March 3, and the Multicultural Affairs Congress division of the Philadelphia Convention & Visitors Bureau postponed its Be There or Be Square fundraiser flexcheck cash advance. It has been rescheduled for March 4 at the Philadelphia Downtown Courtyard.

All Philadelphia public and parochial schools were closed Thursday while many other districts throughout the region were closed or were expected to close early. On the cultural/tourism scene, the Pennsylvania Academy of the Fine Arts, the Academy of Natural Sciences, the Philadelphia Museum of Art and the Franklin Institute were all open, although the art museum canceled some children’s classes.

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Hester stood to earn a bonus of about 1.6 million pounds ($2.5 million) depending on performance, the person said, speaking on condition of anonymity because sensitive negotiations over the size of RBS’s bonus pool are ongoing.

The British government took an 84 percent stake in the bank after it was brought to the brink of collapse by the global credit crunch, and in a circular sent to shareholders in December the bank said it had given officials veto power over the size of its pay-outs.

Although RBS agreed to give the government a big say in the matter, it has complained that outside control over how much it could award in bonuses could put it at “a significant competitive disadvantage.”

Media reports suggested that Hester’s move could be an effort to depoliticize the bonus issue before RBS’s full year results next week.

Two other banking executives have forsworn their bonuses: John Varley, chief executive of Barclays, and Bob Diamond, the bank’s president, both turned them down last week.

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Net income increased to $79 million, or 34 cents a share, from $57 million, 27 cents, in the same period a year earlier, the St. Louis-based utility owner said.

Ameren’s sales fell 12 percent to $1.68 billion, mostly on a decline in wholesale power prices related to the weak economy.

Excluding the loss on diesel contracts and other one-time items, profit fell 12 percent to $85 million, or 37 cents a share, from $97 million, or 45 cents a share.

Ameren said 2010 earnings will be $2.20 to $2.60 a share, down from $2.78 a share for 2009 because of lower margins at merchant power plants.

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Finance chiefs from the 16 nations sharing the euro meet at 5 p.m. in Brussels, where they also may decide who will replace Lucas Papademos in June as vice president of the European Central Bank. Jean-Claude Juncker, who leads the group of euro- area ministers, will hold a press conference after today’s meeting. They will be joined tomorrow by their colleagues from the rest of the 27 European Union countries.

After European leaders made pledges of support for Greece last week that stopped short of committing public funds, investors are looking for greater detail, as well as clues to whether an agreement on Greece could also be applied to Portugal or Spain. Even as the risk premium on Greek debt fell last week on the prospect of European support, the euro weakened on concerns the plans may fall short.

“People will be looking for a roadmap for other crises,” said Stuart Thomson, who helps oversee about $100 billion at Ignis Asset Management in Glasgow, Scotland. “What you want is almost full commitment from the core countries that they will provide loans to cover the Greek funding gaps.”

The euro, which has weakened 5 percent against the dollar since the start of 2010 in part because of concerns over the euro zone’s stability, fell for a fourth day today and slipped 0.1 percent to $1.3615 at 11:30 a.m. in London.

‘Determined Action’

German Chancellor Angela Merkel and her counterparts pledged “determined and coordinated action” on Feb. 11 to support Greece’s efforts to rein in the largest budget deficit in the EU. No concrete details were given on how they would help if Greece has problems selling the 53 billion euros ($72 billion) of debt it needs this year. Greece ran a budget gap of 12.7 percent of economic output in 2009.

Aid to Greece could go beyond loan guarantees, German Finance Minister Wolfgang Schaeuble said, according to a lawmaker who attended a Feb. 10 briefing. Another option is a lending facility with proportionate contributions from each country, an EU official said, adding that it’s premature for a European bond.

The treaties underpinning the euro forbid bailouts by the ECB and make clear that nations are not responsible for each other’s debt. Still, EU rules on aid are more flexible than the German government first thought, Schaeuble told lawmakers at the briefing.

The ECB seeks greater cost-cuts and tax hikes in Greece than European finance ministers do, Handelsblatt reported yesterday, citing a draft EU document listing possible measures.

‘Enough’ for Trichet

“Everyone needs to respect their commitments,” ECB President Jean-Claude Trichet said on LCI television yesterday. “For me, that is enough.”

He also said other high-deficit countries must work to meet their budget plans.

“We have a particular Greek problem, but the other countries have their programs and they must be implemented,” he said. It’s “important that all of the heads of state and governments said that they’ll do what is necessary to guarantee the stability of the euro zone.”

The extra interest investors demand to hold Spanish and Portuguese debt rather than German equivalents also fell last week on anticipation of a rescue package for Greece. Portugal’s deficit was 9.3 percent of gross domestic product last year, and Moody’s Investors Service said on Jan. 13 that the economy, like that of Greece, risks “slow death” as increasing amounts of wealth are channeled to pay debt.

Spanish Spread

The extra interest on Spanish 10-year bonds was 80 business card.9 basis points today, compared with 100 basis points on Feb. 5. German bonds declined today as investors waited for details from the Brussels meeting.

Spain, which is suffering from the highest unemployment in the euro region and remained in a recession last quarter, had a 2009 deficit of 11.4 percent of GDP, prompting the government to raise the value-added tax and create a 50 billion-euro cost- cutting plan. Spanish Prime Minister Jose Luis Rodriguez Zapatero on Feb. 11 distanced his country’s situation from that of Greece, saying Spain had “solid” public finances and stood ready to help its Mediterranean neighbor.

“An important part of this issue is how ad hoc it turns out to be: it’s not only Greece facing potential difficulties,” said Nick Kounis, chief European economist at Fortis Bank in Amsterdam. “This whole thing needs to be institutionalized.”

‘Flawed’

Merkel may struggle to convince her Free Democratic Party coalition partners of that. Carl-Ludwig Thiele, the FDP’s financial-policy spokesman in parliament, said on Feb. 11 that Germans shouldn’t pay for the “consciously flawed fiscal and budgetary policies” of other countries. Former ECB Chief Economist Otmar Issing said last week that German taxpayers could not be expected to support Greece’s pension system, which he called “one of the most luxurious” in the world.

Fifty-three percent of Germans say Greece should be forced to leave the euro-area should its debts endanger the currency’s stability, the Bild newspaper reported, citing a poll.

Last week’s commitment to defend Greece and the euro area as a whole came a day before data showed the region’s recovery almost stalled in the fourth quarter. Further pressure on the euro may help convince Germans that a rescue is in their interests.

“Markets never accept the first solution,” said Thomson at Ignis. “They know that they can always get a better solution, that they force greater surety for themselves.”

Lab Rat

Greek bonds have slumped since November on concerns the government in Athens would struggle to pay off its debt. The extra interest investors demand to hold Greek 10-year bonds instead of German equivalents is nine times what it was two years ago. Amid expectations of European aid, the spread fell to 295 basis points today from a high of 396 point at the end of last month.

At the same time, Greece signaled there are limits to how far it will go after strikes paralyzed Athens last week.

Prime Minister George Papandreou said Feb. 12 that Greece has become a “lab rat” in the EU’s battle with markets and the bloc “hasn’t yet understood its strength to shape policies and rules to deal with the ailments of international markets.”

ECB Decision

The decision on who replaces Papademos as ECB vice president may be key to the question of who succeeds Jean-Claude Trichet when he steps down as head of the bank next year, with an appointment of Vitor Constancio potentially paving the way for Bundesbank President Axel Weber to take over as president.

Constancio, the Portuguese central bank governor, has a reputation as a policy maker who pays more attention to economic growth than some of his ECB colleagues. That could make it easier for Germany to argue that Weber, who is seen as being at the opposite end of the policy spectrum, should become president. Appointing Luxembourg governor Yves Mersch, who is also seen as one of the ECB’s toughest inflation fighters, to the second-most senior job could increase the chances for Italy’s Mario Draghi.

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Claims fell by 43,000, more than anticipated, to 440,000 in the week ended Feb. 6, Labor Department figures showed today in Washington. The total number of people getting unemployment insurance and those receiving extended benefits decreased.

The fastest pace of growth in six years last quarter means the economy may be poised to add jobs as companies restock shelves to keep pace with increased sales. The Obama administration today projected payrolls will grow by 95,000 a month on average this year, indicating it will take a long time to recover the 8.4 million jobs lost since the recession began.

“Healing is under way, but this process will take time,” said Raymond Stone, managing director of Stone & McCarthy Research Associates in Skillman, New Jersey, who correctly forecast the drop in claims. “We are moving in the right direction and I think we will see some job growth” in coming months.

Stocks fluctuated between gains and losses as disappointment that European leaders didn’t provide specific solutions to solve the Greece’s debt crisis offset the drop in claims. The Standard & Poor’s 500 Index rose 0.4 percent to 1,071.82 at 11:36 a.m. in New York. Treasury securities fell.

Less Than Anticipated

Economists forecast claims would fall to 465,000, according to the median of 47 projections in a Bloomberg News survey. Estimates ranged from 440,000 to 485,000. The Labor Department revised the prior week’s claims figure up to 483,000 from an initial estimate of 480,000.

The drop in applications represents the end of an “administrative backlog” that built up when state government offices were closed during the year-end holidays, a Labor Department spokesman said in a press conference. The current figures signal a return to a more “normal” level of claims, he said.

Claims in California showed the biggest gains in early January, indicating that state was the one grappling to process applications, economists said.

“The reversal of the upward lurch in claims does allay concerns about a significant further deterioration in the labor market,” Michael Feroli, an economist at JPMorgan Chase & Co no fax payday loans. in New York, wrote in a note to clients.

Snow’s Influence

The blizzard that brought the eastern U.S. to a standstill, signals claims for this week will probably be affected by the weather, Feroli said.

The White House’s Council of Economic Advisers today predicted a monthly rise of 190,000 jobs on average next year and 251,000 in 2012, according to its an annual report to the president.

“There are strong signs that the American economy is starting to recover” and the labor market “appears to be healing,” the report said. “With millions of Americans still unemployed, much work remains to restore the American economy to health.”

Stone & McCarthy’s Stone said the administration’s 95,000 a month estimate for this year was “conservative,” and that the gain was more likely to exceed 100,000.

The number of American workers receiving benefits decreased to 4.54 million in the week ended Jan. 30, the fewest since January 2009, today’s report from the Labor Department showed. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.

Continuing Claims

The number of people who’ve used up their traditional benefits and are now collecting extended payments dropped by about 171,000 to 5.68 million in the week ended Jan. 23.

The unemployment rate in the U.S. unexpectedly dropped to 9.7 percent in January, while payrolls declined by 20,000, Labor Department figures showed Feb. 6. Manufacturers added to payrolls for the first time in three years and that may provide some spark to revive the rest of the labor market.

Even so, some companies continue to cut staff.

United Parcel Service Inc., the world’s largest package- delivery company, said Feb. 8 it plans to furlough at least 300 pilots unless it can find more savings in a joint effort with the employees’ union. The company already is cutting 1,800 small-package jobs.

“Even though the economy has begun to turn around, UPS anticipates a very gradual recovery and a continued need for belt-tightening,” Bob Lekites, president of UPS Airlines, said in a statement.

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The “Bark Collar” commercial, which featured a dog tricking a guy out of his bag of Doritos by collaring the man with a bark collar, was created by 5 Point Productions of Raleigh. The ad won the group a $50,000 prize from Frito-Lay and another $600,000 for its second-place finish in the USA Today Ad meter.

The USA Today Ad meter is produced by a survey of focus groups assembled by the newspaper.

A Snickers ad featuring actress Betty White ranked No. 1 on the USA Today Ad meter. Rounding out the top five were the Bud Light commercial with a house constructed of beer cans; the Anheuser-Busch commercial of a Clydesdale horse befriending a longhorn steer; and a Coca-Cola commercial of a sleepwalker through tough terrain.

The Super Bowl advertisements during the CBS broadcast cost between $2 million and $3 million for a 30-second spot, but they also have the potential of being viewed by more than 100 million viewers. Nearly 60 ads aired during the game between the New Orleans Saints and the Indianapolis Colts.

Wilmington communications agency Talk Inc. also released its annual Talkies Awards, in which the company’s staff ranks the Super Bowl advertisements based on creativity, innovation and effectiveness.

Talk Inc.’s top 10 picks were:

1. Dodge Charger – Take a Stand
2. Denny’s (all ads collectively)
3. Budweiser’s human bridge
4. Bud Light’s beer house
5. Doritos’ bark collar
6. Google’s Parisian love
7. Audi’s green police
8. Dockers’ time to wear pants
9. Kia Sorrento’s sock monkey joy ride
10. Monster.com’s fiddling beaver

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In the U.S., more than 100 complaints alleging poor brake performance have been lodged with the National Highway Traffic Safety Administration against the 2010 Prius, a newly designed version of the car that was introduced last summer.

"NHTSA has received a number of complaints about a potential defect affecting the brake system in Toyota’s Prius hybrid and is conducting field work to examine the issue," the agency said Wednesday.

In Japan, 14 complaints about brakes in the Prius have been lodged since July. Japan’s Transportation Ministry has asked Toyota to investigate brake malfunction complaints in Japan on the Prius, according to the Japan Automobile Dealers Association.

"The complaints received via our dealers center around when drivers are on a bumpy road or frozen surface," Paul Nolasco, a Toyota Motor Corp. spokesman in Japan, said. "The driver steps on the brake and they do not get as full of a braking feel as expected."

A search of NHTSA’s complaint database turned up many similar-sounding complaints in the U.S.

"I have been driving my 2010 Prius for 6 months and have experienced the following nearly 10 times," wrote one owner, "When braking, if a pothole or bump in the road is hit, the car seemingly jerks forward/accelerates for a split second."

A Toyota spokesman in the U.S. was not immediately able to provide any comment on the situation.

The Prius is Toyota’s third best-selling model in the U.S., ranking behind only the Camry midsized sedan and the Corolla compact car.

Toyota’s public image, and its sales, have been hit by recent recalls involving unintended acceleration.

Toyota recalled 2.3 million vehicles on Jan. 21 due to problems with sticking gas pedals and later halted the sale of the eight models involved in the recall.

Toyota’s U.S. sales plunged 16% in January as a result, even as sales of other automakers rose.

About 4.2 million vehicles were recalled in November for a problem in which the cars’ gas pedals could get stuck in some floor mats. The last-generation version of the Prius was included in that recall, which was expanded to include another 1.1 million last week.

Brakes in hybrid cars like the Prius operate differently from brakes in most cars. In addition to standard brakes, which use friction from pads pressed against drums or rotors, hybrid cars use their electric motors to help slow the car, a process that generates electricity to recharge the batteries. 

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