Saturday, September 25, 2010
There are ponzi schemes, manipulation and then, there is China. Picture this scenario. Everyone you meet and know lends you money to start a small business. The business would be yours, however you owe the investors for whatever percentage of their piece of your pie. Now, place this business in China. In fact, to be more factual let us imagine a new mall called the "Global Mall." In this mall would be companies from the global community. For instance, we will have a Mercedes show-room, a Sony electronics store, an Apple IPad outlet, a French wine outlet and a Dell computer retail store. Do you get the picture? Now, according to the Chinese Premier Wen Jiabao last Monday at an economic forum in Tianjin, China, these are all Chinese companies. These are his words and law of the land, "Any company registered in China according to Chinese law is considered a Chinese company. The products they produce are all Chinese-made. The innovative products they develop are all Chinese innovations. Foreign companies registered within China's borders all enjoy national treatment." This treatment steals patents and expertise like the Chairman Jurgen Hambrecht of BASF of Germany says,"They forced disclosure of know-how," or the foreign minister of Japan, Katsuya Okada who said,"Foreign companies have faced problems in China that are unthinkable in a normal business environment." Today, Ford signed a contract to open their third auto plant in China estimated at $500 million. Tomorrow, China will say that they added another $500 million to their economic growth. Now, do you get the picture?