Wednesday, August 20, 2014


Why do I get the impression the recent and on-going enforcement of China's antitrust laws against European, Japanese and American automakers and parts manufacturers is a government form of blackmail?

They offered incentives for these companies to establish business in China, let them operate for years without oversight, and then suddenly enforce antitrust laws with fines, while small, are significant because while the money will go to the government, it's not intended for the government but Chinese-owned businesses.

We should remember China's goal here isn't for foreign companies to establish businesses in China in cooperation with mandated partnership with Chinese companies, their goal is the eventual ownership of those companies along with the technology of the products and the manufacturing plants.

China's goal is to have all their products sold in China to be produced by Chinese companies for the profit of government-owned companies whether owned directly or through proxies, often high-ranking government leaders. 

We shouldn't forget one day China will be exporting American cars to the US as they now export American company parts and products. Their goal is to establish a network of auto dealerships selling their cars, all designed and built with US automaker technology.

Will you buy a Chinese car? You buy their auto parts, why not the whole car?

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