GE moving X-ray business to China

http://www.boston.com/business/articles/2011/07/26/ge_moving_x_ray_business_to_china/ ^

[kcvl]

General Electric Co.’s health care unit, the world’s biggest maker of medical imaging machines, is moving the headquarters of its 115-year-old X-ray business to Beijing.

Tweet 14 people Tweeted this.ShareThis .“A handful’’ of top managers will move to the Chinese capital and there won’t be any job cuts, said Anne LeGrand, general manager of X-ray for GE Healthcare. The headquarters will move from Wisconsin amid a broader plan to invest about $2 billion across China, including opening six “customer innovation’’ and development centers.

The division should have “double-digit’’ growth rates as the country converts from film and analog to digital X-ray technology, LeGrand said.

GE Healthcare, also the world’s biggest maker of magnetic resonance imaging and cardiac tomography scanners, got about $1.1 billion of its $16.9 billion in sales from China last year.

[Noob1999]

Note that is only a handful of managers that will be sited in China. But they will always be on the road, going around the world to drum up business, except for the five months and twenty five days a year that they are with their US based family, ensuring that they are not residents of the US.

So, GE can take this fast growing, profitable business headquarters out of the US, thus future worldwide profits are then subject to intercompany transfer prices, regardless of where the products are actually produced, and the transfer pricing mechanism will be skewed to recording profit in the lowest tax rated country.

It’s no wonder that GE pays no US income taxes, they dodge the tax by US and international tax laws. (Back when I was with ITT, they did the same, and didn’t need to pay US taxes.

[TheOldLady]

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[joelt]

What I knew as GE Medical Systems when I lived in WI back in the 80s was a huge manufacturing facility. Its in Waukesha which I believe is a conservative area. Offshoring righty jobs is on the regime’s agenda. WI Freepers: Whats up with this move?

[TChad]

James Fellowes thought that relocating his shredder manufacturing business to China was a great idea. His Chinese business partner stole the company.

http://www.theepochtimes.com/n2/china-news/american-stationary-giant-brought-to-its-knees-in-china-54204.html

[nascarnation]

It can't cost that much to make this stuff.

ANY medical related sale includes a HUGE premium to insure against the John Edwards of the US.

[indthkr]

"China has central planning by scientists, engineers, and mathematicians, and the US has central planning by lawyers. By definition we lose."

Pretty well sums it up.