Commence the trade war.
It’s going to happen. Might as well be on our terms for a change.
what happens when China becomes mad at the USA , where do you get all your cars, computers , trains etc etc ?
Well GM could get subsidies from the USA, but that is still money from China, so GM is now “cutting out the subsidy middleman” that is the US government.
Uncle Obama will not be pleased....
And now China will gain more tech secrets....
We seem to be a monumentally stuipid people in letting this sorta thing happen, of course because GM is addicted to subsidies, it was only a matter of time before they went directly to our trade rival for their “fix”.
This just goes to show that companies like GE and GM have been trained to respond to Socialism. Dangle a few bucks in front of them and no matter what strings are attached, they will come running. Obummer or the Chinamen, they are all the same to these companies.
Say whatever you wish about the Chinese, they are not dumb.
The real prize here is advanced jet engine technology from GE. They will allow GE to make huge investments in China so that when the Chinese finally ask that one favour, it cannot be refused.
China is the last great hope for GM, if China goes, GM goes. Money made from China is used to subsidise the unprofitable US operations of GM.
With every passing day, the Chinese are locking US businesses in a tighter embrace. They know that US businesses employ lobbyists and that lobbyists write trade legislation. I can hear calls for the US to sell advanced technology to the Chinese to “reduce the trade deficit”.
Things were a bit easier during the Cold War and Arabs are not that smart. The Chinese are a whole lot smarter than we think.
Say whatever you wish about the Chinese, they are not dumb.
The real prize here is advanced jet engine technology from GE. They will allow GE to make huge investments in China so that when the Chinese finally ask that one favour, it cannot be refused.
China is the last great hope for GM, if China goes, GM goes. Money made from China is used to subsidise the unprofitable US operations of GM.
With every passing day, the Chinese are locking US businesses in a tighter embrace. They know that US businesses employ lobbyists and that lobbyists write trade legislation. I can hear calls for the US to sell advanced technology to the Chinese to “reduce the trade deficit”.
Things were a bit easier during the Cold War and Arabs are not that smart. The Chinese are a whole lot smarter than we think.
China Venture Is Good for GE but Is It Good for U.S.?
Can’t find full online version.
http://online.wsj.com/article/SB10001424052970204226204576601211373125234.html