Investing in Chinese private security firms

The Chinese leaders are very much aware that the protection of the infrastructure built in foreign lands as part of the gigantic Belt and Road Initiative will be a major issue. Such infrastructure will face a variety of menaces. They also know they can’t exclusively count on each participating country’s security apparatus. It’s a fact they will increase the security cooperation with the States concerned. We will see in the next few years a serious push in the area of bilateral security cooperation. State to State cooperation, the official side of the matter, will be competing with the security assistance coming from Western countries. It will become a new front of tension as well.

However, the Beijing leaders do not consider that form of cooperation as enough. Consequently, and without any fanfare, they have opened a new door in their domestic economic edifice. We are now witnessing a rapid expansion of the private security firms in China. This is a fast-growing sector of the economy.

My sources tell me that there are already more than 4,000 Chinese companies ready to operate overseas and protect their country’s investments. In addition, the industry related to the production of security gadgets for the use by private companies is also expanding fast. It is a high-tech sector of the economy. We should have no illusions about that. Two weeks ago, in Kunming, the capital of the Yunnan Province, an area that borders Myanmar, Laos and Vietnam, a beautiful region for that matter, there was a major exhibition of Chinese-produced security items. Without going into the details, the show was a major eye-opener. One could see the Chinese are far more advanced in that industry than what we can guess.