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The slowdown is largely self-imposed as Chinese leaders try to nurture more self-sustaining growth based on domestic consumption instead of exports and investment. But consumer spending growth is slow. That has forced Beijing to prop up China's rebound from its deepest downturn since the 2008 global crisis with spending on building subways and other public works, which pumps still more money into state industry. Growth of the world's second-largest economy is forecast at 7 to 8 percent over the next decade -- far above the low single digits expected from the United States and Europe but China's weakest performance since the
'90s. "They know this economy may have rough days ahead, so why not take their capital and diversify around the world?" said Jim McGregor, chairman for Greater China at consulting firm APCO. State-owned oil and mining companies still account for China's biggest deals abroad, including multibillion-dollar investments in Australia, Africa and Latin American. In 2007, China's sovereign wealth fund bought a 9.9 percent stake in Morgan Stanley for $5.6 billion. But smaller private companies are expanding in a wider array of industries including technology, manufacturing, food processing and real estate. Bright Foods acquired a majority stake last year in Weetabix, which makes Alpen muesli. Hanergy Group, a builder of hydroelectric dams, bought two makers of solar panels -- MiaSole in California and Germany's Solibro. Shuanghui's Wan, a former soldier, started his rise in 1985 when coworkers elected him manager of a slaughterhouse in his hometown of Luohe in central China. The economy was in the early stages of then-supreme leader Deng Xiaoping's reforms. The ruling party had begun allowing privately owned restaurants and other small businesses. Rolling back its "iron rice bowl" policies of jobs for life and nationwide wage standards, Beijing was starting to let companies pay employees for the first time based on their productivity. According to Caixin, China's leading business magazine, Wan turned around his struggling slaughterhouse with such radical innovations for the time as operating three shifts around the clock, every day of the year. It said that in the first year the business swung to a profit of 5 million yuan (about $1.7 million at that time). The company grew rapidly while undergoing repeated restructurings. It split into two competing companies at one point before reuniting. In 2006, its managers bought out the remaining state stake using money from investors including Goldman Sachs and Singapore state investment company Temasek Holdings Ltd. Today, the company is controlled through Shuanghui International Holdings Ltd. in Hong Kong, of which Wan is chairman. The operating unit on the mainland, Shuanghui Investment and Development Co., says it is China's biggest meat processor, with annual sales in excess of 50 billion yuan ($8 billion) and more than 60,000 employees. China consumes more than half the world's pork. That makes the tie-up with Shuanghui a possible boost to Smithfield by giving the American producer a readymade distribution network for its Armour, John Morrell and other brands as Chinese buy more processed and packaged meat. Shuanghui's reputation was battered in 2011 when state television revealed its pork contained clenbuterol, a banned chemical that makes pork leaner but can be harmful to humans. The company apologized and promised to improve quality -- a process that might benefit from an infusion of know-how from Smithfield. "Pork in China is a vegetable. It's everywhere," said McGregor. "Good for China, trying to up its game on best practices."
[Associated
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