What does a Strong Tiger want with a Weak Bear Stearns?

Implications: The CITIC tiger is far the stronger of the two, so why does it wish to hunt with the weak Bear Stearns? The answer may be that CITIC will control any joint ventures between the two.

Analysis: Goldman Sachs, HBSC Holdings, and Morgan Stanley are the dominant American players in the Asian markets even if they haven't made much progress in becoming 'insiders' in mainland China.

CITIC is a state owned company, so it would seem to give Bear Stearns an advantage over its much more successful rivals to link up with CITIC. In fact all of the advantage belongs to CITIC, because it will now have a window onto Wall Street, which the stronger houses would not allow, or if they would allow, it was only for a peak, not a good look.

The Chinese government wants to know what makes Wall Street tick; they still do not believe that the American business model allows its financiers the freedom to work against the interests of US foreign policy simply to make a profit.

The CITIC 'observers' at Bear Stearns will now be able to see for themselves the worst aspects of the American capitalist's version of the free market, in particular the aspect that places profit above the nation's welfare among a generation of self absorbed men with the single purpose of having more money than anyone else.

China has won this round by positioning a state owned company on Wall Street with access to information and a conduit for its sovereign wealth.