What typically tends to happen ,when a Local company is taken over by A Foriegn company is that they bring in best management practices in place.Help to take out layers of fat which come in naturally and simplify the entire organizational structure.
This is why there is so much resistance to these Take overs.It has very little to do with Nationalism and more to do with Laziness(People get used to getting paid for very little or no work) & refuse to compete with the Best talents worldwide....
The problem is more of keeping ones Currency Artificially suppresed so as to help them grab both market share as well as Foriegn Currency(and Assets).
This is precisely what the Chinese are doing.All the Inflation that should have been there in the West has been exported East(in China) by keeping costs of all items artificially lower than it should be.
In a global economy it is only reasonable to expect that foreign countries will buy American companies. Nobody seems to have a complaint when an American company takes over a foreign one. They don't care if these companies are located in Europe, Asia, or Central and South America. Many people show pride and arrogance that the U.S. has the right to do this, yet if a foreign country, especially a communist country starts buying American plants there is a giant uproar. Some of these foreign countries are coming to the U.S. because they are taking advantage of breaks the U.S government is giving them to keep the American economy moving.
I don't believe the outcry you are hearing is due to double standards. It is more of the increased awareness by the populace of the drain of both resources and technologies from the US to China and other outsourcing destinations. It is this awareness, laced with the effects of unemployment that has led individuals to become more vigillant on prospective dangerous business plans. Purchasing Western Firms will be the last nail in the coffin.
The poll is actually pretty balanced. I am surprised, considering the trade imbalance as it now appears is quite significant w.r.t. the freedom of operations. There are multiple levels of consolation which will be required before the chinese business truly reflects the capitalistic west; at which point, technology and IP access will not remain a threat.
The poll had shown the true perception of the populace with China's business style. I do not condemn China from investing in the Western world but there is no reason for any bate.
There will always be rip-off artists in business and greedy executives, but there wasn't this kind of outcry about greed when businesses were deserting communities across America over the last twenty years. Why the double standard? We have a model--free enterprise--that has yielded advancement for the Chinese and low-priced goods for Americans. What's good for the goose is good for the gander as the saying goes. There isn't any principle of free enterprise by which obstructing the right of Chinese businesses to conduct business in this country the same as any other business is advised. There's no justification for worries about the Chinese handling our defense, other than xenophobia. Would the US government be crazy enough to contract out to a foreign firm, let alone a Chinese one? Actually they are when it comes to interrogating suspected terrorists, but that's another story.
Thanks! It is my hope that the populace in the West will be acerbated enough to hold these greedy executives accountable and not send us into a monoply in which China is in full command. But based on the current state of affairs, I am still worried!
I can be a little more open on this subject than I previously could, part of my recent employment history related to technology being bought from the USA & Japan, shipped to 'dummy' third parties in countries that were perhaps not as tightly audited, then trans shipped to China specifically for reverse engineering of the technology, part of my job description was to disassemble and reverse engineer this technology.
Generally such analysis included both the physical mechanical parts, PCB's & electrical systems, general overview and the integral software of the device.
Being involved in this area, and having the unique perspective of being on the inside, I can safely say that if anything there is an ongoing increase in this behavior but that the acquisition of the products is becoming more professional and harder to detect , resulting in the appearance of a general decline and cleaning up of Copyright/ IP protection in China
Unfortunately the reality of the situation is far more interesting.
You are talking about Greed and how Greed tends to overcome every other emotion for most Senior Corporate Executives.
I agree and understand your rationale entirely.However,you underestimate how Angry the electorate in most Western Nations is today[They are unemployed and totally broke today]&the impact this is having on most Politicians and their dialogue with the Chinese[Its getting more and more acerbic...].
This situation reminds me a lot about the Smoot-Hawley act after World War 1.We are for sure heading for another severe round of protectionism today.
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Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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