China Snubs Google Again: Today's Outrage - TheStreet

China Snubs Google Again: Today's Outrage

China snubbed Google but snapped up Apple in its $9.6 billion U.S. stock buying spree last year. Any surprise?
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SHANGHAI (

TheStreet

) -- China snubbed

Google

(GOOG) - Get Report

but picked

Apple

(AAPL) - Get Report

when it decided to divert some of its $300 billion investment fund into U.S. stocks.

Anyone surprised? Could it possibly have anything to do with

Google's threat to leave China

over a dispute about censorship, hacking, etc?

Google's China Crisis

Image placeholder title

The Google-China intrigue also caught the attention of my colleague Michael Corkery over at the

Wall Street Journal

's

Deal Journal

blog. Other than that, Corkery said he didn't find any dire signs of a plot to achieve world domination in China's recent filing with the

SEC

to report the purchase of $9.6 billion worth of U.S. shares last year.

We could get up in arms about China buying up America, but that's yesterday's news. Why shouldn't the Chinese invest in the U.S.? Let's take it as a sign of respect that they like what they see here -- at least as far as investments go.

So let's review what the Chinese government considers good investments in America. There's

Coca-Cola

(KO) - Get Report

and

Johnson & Johnson

(JNJ) - Get Report

(two of Warren Buffett's favorites) and China also put some cash in big banks, including

Morgan Stanley

(MS) - Get Report

,

Citigroup

(C) - Get Report

and

Bank of America

(BAC) - Get Report

.

The most political move appears to have been the purchase of $1.2 billion of Morgan Stanley shares when the investment bank sold shares to repay the U.S. taxpayer bailout funds it received, according to the

New York Times

.

Nothing too sinister there, but...

While I'm intrigued by the intrigue surrounding China's SEC filing, all I see is value investing.

Ultimately, my outrage is not so much about what China

is

doing but what

isn't

doing. The new transparency about its U.S. stock holdings belies China's old dichotomy about exploiting Western capitalism while eschewing the underlying democratic principles.

If I were running Google, I'd be happy that the Chinese aren't buying my stock.

China just doesn't get what Google is about - creating value through openness.

--Written by Glenn Hall in New York.

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