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GE moving X-ray business to China
http://www.boston.com/business/articles/2011/07/26/ge_moving_x_ray_business_to_china/ ^

Posted on 07/26/2011 1:16:15 PM PDT by 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.

(Excerpt) Read more at boston.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: china; ge; generalelectric; governmentelectric; healthcare
The Immelt Way: WH Advisor on Jobs Moving GE X-Ray Business to China...

Per Drudge...

1 posted on 07/26/2011 1:16:17 PM PDT by kcvl
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To: kcvl
This will make a nice anti Obummer ad in the '12 election.

Obummers Corporate buddy pays no taxes and then move a division to China. Swell.

2 posted on 07/26/2011 1:19:21 PM PDT by Lazlo in PA (Now living in a newly minted Red State.)
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To: kcvl

How much of those GE earnings that are sitting on the sidelines in this economy were earned overseas? Just another operating division who’s profits will never be repatriated due to the US Corporate tax system. Wonder why the jobs are gone? Here’s one reason.


3 posted on 07/26/2011 1:19:59 PM PDT by Tallguy (You can safely ignore anything that precedes the word "But"...)
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To: kcvl

I think this country has had it’s bellyful of GE. Time to go Alinsky on their azz.


4 posted on 07/26/2011 1:20:32 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: kcvl

Is anyone really surprised?


5 posted on 07/26/2011 1:22:09 PM PDT by F1reEng1neRed
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To: kcvl
We'll be hearing a lot about this from Chris Matthews and the MSM, won't we?

... oh

6 posted on 07/26/2011 1:22:14 PM PDT by Baynative
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To: kcvl
Siemens, ABB, Toshiba, .........

Anyone but GE is my new slogan.

7 posted on 07/26/2011 1:22:26 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: blackdog

We now need to ask where the XRay machine is made before we get into one. I wouldn’t use one of those things on a bet. So....we continue to refuse to buy Chinese products as well as GE products.


8 posted on 07/26/2011 1:23:53 PM PDT by RC2
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To: Tallguy

Could we at least get China to use their military to defend corporate interests overseas?


9 posted on 07/26/2011 1:24:56 PM PDT by Wolfie
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To: Tallguy

Why do you think companies are moving to China? Do you think our taxes, labor and environmental regulations, labor unions, and unfriendly business attitude might be playing a role? Or why are countries like China and Ireland attracting US corporations to set up their headquarters in those countries? Until we make this country a more attractive place to do business, we are going to see more and more jobs going elsewhere. It isn’t just about cheap labor.


10 posted on 07/26/2011 1:26:13 PM PDT by kabar
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To: blackdog

The president’s jobs czar is doing a heck of a job — for China

Posted by Jon Talton

President Obama continued to exhibit a pleading weakness in his prime-time speech Monday night, so it’s no wonder Monday was the same day that his “jobs czar,” General Electric CEO Jeffrey Immelt, chose to announce the company will be moving the headquarters of its health-care division to China. You want compromise, Mr. President? In your face, sir, with all due respect.

Immelt replaced Paul Volcker as a top economic adviser. The former Federal Reserve chief, who defeated runaway inflation in the early 1980s, was done in by his resistance to letting the big banks and Wall Street resume the business as usual that led to the financial meltdown. Mr. Obama wanted to project a more business-friendly face for his administration. The results of Immelt’s public service have been to barely dent the plight of 24 million Americans who are unemployed or underemployed. I suppose we should be grateful that GE’s domestic employment dropped only 1 percent last year even as net income hit $11.6 billion, topping Wall Street expectations.

http://seattletimes.nwsource.com/html/soundeconomywithjontalton/2015732625_the_presidents_jobs_czar_is_do.html


11 posted on 07/26/2011 1:26:19 PM PDT by kcvl
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To: kcvl
Jeffrey Immelt could have sold poison gas to Hitler and not have lost a moment's sleep.
12 posted on 07/26/2011 1:31:49 PM PDT by bwc2221
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To: kabar
It isn’t just about cheap labor.

Tell me about it. When you factor in the productivity advantages of the American worker the labor-cost disparity is usually slight-to-non-existent. It usually comes down to a taxes & cost of capital.

When some of my customers move automated assembly lines over to China the word came back that the "locals" couldn't maintain the equipment or get consistently good parts off them. So the Chinese did what they do best... they started hand-assembly. You can't tell me that the part quality didn't suffer.

13 posted on 07/26/2011 1:31:56 PM PDT by Tallguy (You can safely ignore anything that precedes the word "But"...)
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To: kcvl
Below is an exerpt from "Wall Street and the Rise of Hitler" by Antony Sutton.

As we probe into behind-the-scenes German interwar history and the story of Hitler and Naziism, we find both Owen D. Young and Gerard Swope of General Electric tied to the rise of Hitlerism and the suppression of German democracy. That General Electric directors are to be found in each of these three distinct historical categories — i.e., the development of the Soviet Union, the creation of Roosevelt's New Deal, and the rise of Hitlerism — suggests how elements of Big Business are keenly interested in the socialization of the world, for their own purposes and objectives, rather than the maintenance of the impartial market place in a free society. General Electric profited handsomely from Bolshevism, from Roosevelt's New Deal socialism, and, as we shall see below, from national socialism in Hitler's Germany.

Entire document can be found here.
14 posted on 07/26/2011 1:37:22 PM PDT by SpaceBar
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To: kcvl

GE sez: Give me your American money, and then moves offshore. Boy we got a great deal didn’t we? Stupid government!


15 posted on 07/26/2011 1:38:24 PM PDT by vpintheak (Democrats: Robbing humans of their dignity 1 law at a time)
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To: bwc2221

Immelt has been known to do those types of treasonous things.

From a Ted Baxter piece he did a number of years.

http://www.foxnews.com/on-air/oreilly/2008/04/15/iran-general-electric-and-new-york-times


16 posted on 07/26/2011 1:38:57 PM PDT by Lazlo in PA (Now living in a newly minted Red State.)
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To: kcvl

Way to go Zero...

Pr. Obama - ‘STOP GOP Offshoring of US Jobs’
http://www.youtube.com/watch?v=Nt-pcsvdKGo


17 posted on 07/26/2011 1:40:50 PM PDT by brownsfan (I miss the America I grew up in.)
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To: kcvl
Aren't there any Americans who can start up businesses to compete with these globalists?

My mom is using bandages that cost $5 each made in Sweden. CVS charges $1.00@ for a regular J & J surgical dressing pad. Aquafore costs $7.50 for 3 oz and it is packaged in heavy plastic that prevents people from getting all of the ointment out of the tube. Some of the bandages cost $10 each. A toilet seat on a handicapped portable toilet cost $80

If it wasn't for Amazon, they couldn't afford to take care of her.

One of her antibiotics cost $650 for 10 days taking 2 tsp 2X/day.

Surely we have enough know how to start up honest companies. It can't cost that much to make this stuff.

18 posted on 07/26/2011 1:43:19 PM PDT by stars & stripes forever ( Blessed is the nation whose God is the Lord.)
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To: brownsfan

He makes me sick! I cannot and will not watch the arrogant jerk who has no freaking clue.


19 posted on 07/26/2011 1:44:45 PM PDT by kcvl
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To: kcvl
No surprise.

Even more than 5-years ago, GE did 40% of it's R&D and 70% of it's engineering offshore. The US is just where they house their vastly overrated managers and executives.
20 posted on 07/26/2011 1:57:23 PM PDT by indthkr
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To: kcvl

F.O.O.


21 posted on 07/26/2011 2:10:41 PM PDT by Rational Thought
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To: stars & stripes forever

Aquaphor - 14 oz. jar - $16.99

http://www.drugstore.com/aquaphor-healing-ointment/qxp183554

Go through Ebates and get 8% back from Drugstore.com

And you can always find coupons if you Google for them...

$5 off $40 & Free Shipping Coupon -
This Drugstore.com coupon expires July 31, 2011.
$10 off $80 & Free Shipping Coupon


22 posted on 07/26/2011 2:14:51 PM PDT by kcvl
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To: kcvl
Obama’s jobs Czar - extremely effective in creating jobs——in CHINA.

Good soundbite/campaigne poster material here.

Once the engineers are trained, this product will join all the other stuff in cargo holds coming from China.

23 posted on 07/26/2011 2:21:19 PM PDT by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: kcvl

GE = Obama’s best friend. I wonder if I could get some of those great GE grants and subsidies!


24 posted on 07/26/2011 2:23:27 PM PDT by stocksthatgoup (Obama, "Don't call my bluff" (Oops!))
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To: kcvl
If I owned a manufacturing business, I too would move it outsIde of the USA.

It doesn't make sensę to even bother trying in the USA... The government has now stacked the cards against us.

Name a city where a company has built a new manufacturing facility? Pretty hard to do. Factories are buildings that get torn down in urban America these days. New ones are not built and are not ever going to be built again.

Exorbitant property taxes, unions, regulation, environmental tyranny and urban ghettoization make US cities hostile environments for business investing.

Look at, say, Hartford, CT.

The "mill rate" is over 60 mills.
That means, for me to build a $10 million factory I would be liable for some approximately $500,000.00 in properry taxes alone per year. You have to stay up pretty late at night to figure out a way to hand over a half million bucks to some local tax collector...

Nobody in their right mind will invest in manufacturing in the average US urban ghetto.

25 posted on 07/26/2011 2:25:01 PM PDT by Bon mots ("When seconds count, the police are just minutes away...")
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To: kabar

“Or why are countries like China and Ireland attracting US corporations to set up their headquarters in those countries?”

Don’t know about the Irish, but the Chinese will steal the technology and kick GE to the curb once they do. GE is a fool.


26 posted on 07/26/2011 2:27:33 PM PDT by bitterohiogunclinger (Proudly casting a heavy carbon footprint as I clean my guns ---)
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To: Bon mots

I agree. Just don’t lecture me about J O B S when your jobs czar is moving jobs overseas because of your damn policies.

******

GE’s Immelt: Stop Complaining About Government

July 12, 2011

Immelt to jobs summit: Businesses need to do more – Jul. 11, 2011.

“The people who are part of the business sector, the people in this room, have got to stop complaining about government and get some action underway,” he told the group. “There’s no excuse today for lack of leadership. The truth is we all need to be part of the solution.”

Immelt is the chair of President Obama’s Council on Jobs and Competitiveness. He said the group has made a number of recommendations for changes in government policies that should be able to help job creation, such as the executive order announced Monday asking independent agencies to rid their books of old and outdated regulations.

http://money.cnn.com/2011/07/11/news/economy/immelt_chamber_jobs_summit/index.htm?iid=HP_Highlight


27 posted on 07/26/2011 2:31:14 PM PDT by kcvl
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To: stars & stripes forever
Aren't there any Americans who can start up businesses to compete with these globalists?

Sure, lots of them! The problem is not just starting up, but growing. Regulatory shackles and confiscatory taxation make it hard to keep a business running on any size bigger than a handful of employees.

Surely we have enough know how to start up honest companies. It can't cost that much to make this stuff.

It's all really cheap - it's why you can get overseas produced versions for cheap. In the US, however, you'll need to probably get FDA certification (making medical products), and the liability insurance you'll have to carry - in case someone ingests your bandage, or puts the Aquafore on their cereal and gets sick - will be stratospheric.

Businesses typically do not move overseas because of labor or basic materials costs; by the time you factor in duties (yes, most things imported to the US have duties applied), shipping, and typically higher reject rates at the factory, the cost will be equal or greater.

However, that company will get to keep significantly more mof what it makes (the US has the highest corporate tax rate in the world, and a full 10% above the OECD average), much lower regulatory burden (no need to provide segregated bathrooms for transgender folks, ADA-compliant magazine holders, etc), and common-sense legal protections (when that client swallows the bandage the court will probably laugh them out of the room, rather than take the complaint seriously).

The overall cost of doing business outside the COGS is much lower. And that is 100% in control of the US Federal Government, and is something out Federal Government continues to ignore. So businesses keep moving.

Better to earn a few bucks overseas, than nothing at home, eh?

28 posted on 07/26/2011 2:32:00 PM PDT by FromTheSidelines ("everything that deceives, also enchants" - Plato)
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To: blackdog
I agree. Our over-the-range microwave is on its last legs. Whirlpool and Maytag are looking good to me.
29 posted on 07/26/2011 2:32:11 PM PDT by bwc2221
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To: kcvl

Sanctimonious hypocrite!

The lapdog media will give him a pass... After all, it’s “Team Obama” in action and the One must not be criticized.


30 posted on 07/26/2011 2:36:13 PM PDT by Bon mots ("When seconds count, the police are just minutes away...")
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To: bitterohiogunclinger

If it’s a product for sale on the open market, you can bet that it’s already been acquired, torn apart, and reverse engineered not just by the Chinese, but in India, Russia, South Korea, Japan, and most of GE’s competitors.

Protecting IP of sold hardware/physical products is essentially impossible - you make the actual IP available for purchase by your competitors. And unless you have the IP protected in their country, don’t expect protection there.

I hold a few patents in the US, and some that were filed and granted in the US, Germany, and China. The only ones I’ve been able to successfully defend in Germany and China were those that were filed there. Unsurprisingly, most nations - including the US - ignore IP protection for other countries.

The US doesn’t care that you, a Taiwanese company, have a Taiwan patent on your product; we only care if you have a US patent as well. Well, most of the rest of the world does the same - they only care if you have a patent in their country, not in yours.


31 posted on 07/26/2011 2:37:07 PM PDT by FromTheSidelines ("everything that deceives, also enchants" - Plato)
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To: FromTheSidelines
Better to earn a few bucks overseas, than nothing at home, eh...

I'm in business to make money. Period.

32 posted on 07/26/2011 2:40:54 PM PDT by Bon mots ("When seconds count, the police are just minutes away...")
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To: kcvl
This is a Headquarters move and therefore is not the offshoring of manufacturing jobs, but rather the offshoring of tax revenue.
33 posted on 07/26/2011 2:46:00 PM PDT by NonValueAdded (From her lips to the voters' ears: Debbie Wasserman Schultz: "We own the economy" June 15, 2011)
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To: kcvl

This is not good.


34 posted on 07/26/2011 2:51:16 PM PDT by PieterCasparzen (We need to fix things ourselves)
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To: Bon mots
I'm in business to make money. Period.

I've been a lurker here at FR long enough to know that if you take that attitude, and also include a willingness to make money overseas, you'll be branded a traitor.

IMHO, paying your own way - even if earning it overseas - is vastly superior to taking Government handouts. And if we had sane regulations and taxation (I'd like to see the corporate income tax rate set to zero, personally - imagine the flood of repatriated capital and new businesses to US shores!) we'd see a lot more economic activity here.

Increasingly, the dwindling number of US businesses are surviving in spite of, not because of, the Government.

35 posted on 07/26/2011 2:56:34 PM PDT by FromTheSidelines ("everything that deceives, also enchants" - Plato)
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To: NonValueAdded
This is a Headquarters move and therefore is not the offshoring of manufacturing jobs, but rather the offshoring of tax revenue.

Precisely! GE doesn't like paying 39.6% of its gross income back to the Federal Government. I can't say I don't blame them...

36 posted on 07/26/2011 2:58:11 PM PDT by FromTheSidelines ("everything that deceives, also enchants" - Plato)
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To: FromTheSidelines

Neither do the rest of us but someone has to pay taxes to keep Uncle Sugar happy. /s

It’s just ironic that Immelt is lecturing everyone else while GE pays NO damn taxes.


37 posted on 07/26/2011 3:00:19 PM PDT by kcvl
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To: FromTheSidelines

A low corporate tax rate alone would not be enough.

Local property taxes are exorbitant, regulation, unions and now environmental hurdles continually raise the height of barriers to business in the USA.

Then you have social regulation regarding protected ethnicities, genders and sexual preferences and a hostile legal environment with lawsuit-happy lawyers populating every icy sidewalk...

There is a lot wrong from a business perspective.


38 posted on 07/26/2011 3:20:02 PM PDT by Bon mots ("When seconds count, the police are just minutes away...")
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To: Tallguy

I have been to China. The corporations have moved top of the line production equipment to China and the workforce is just as capable and educated as Americans. It is very difficult to compete with that.


39 posted on 07/26/2011 3:56:20 PM PDT by kabar
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To: kabar

As a smart guy whose name I’ve forgotten said on CNBC last year:

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


40 posted on 07/26/2011 4:01:40 PM PDT by nascarnation
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To: kcvl

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.


41 posted on 07/26/2011 4:48:14 PM PDT by Noob1999
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42 posted on 07/26/2011 5:37:00 PM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
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To: FromTheSidelines

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?


43 posted on 07/26/2011 5:51:13 PM PDT by joelt
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To: kcvl
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

44 posted on 07/26/2011 6:59:41 PM PDT by TChad
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To: stars & stripes forever
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.

45 posted on 07/26/2011 7:05:39 PM PDT by nascarnation
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To: nascarnation
"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.
46 posted on 07/26/2011 7:47:20 PM PDT by indthkr
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