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China. Technology penetration

It is from the early 2004 when the Chinese government began to support their companies with soft loans in order to expand and conquer Western companies.

So, in December 2004 there was a story that shocked the world when LENOVO GROUP acquired the PC division of IBM.Recalling the famous prophecy of Napoleon: Had he, finally, Chinese giant awakened? No ..., but surely it was the first major Western technology landing.

But China already had their own technological development in certain areas. China, already holds the second highest number of patents after the U.S. and ahead of Japan, was the third country to put a man in orbit for almost a decade and plans to 2020 pose on an unmanned moon, it is well known that space research and military projects are the great engines of technological development, and therefore strives to these two fields as it did in the past U.S.. (Put "Taikonauts" in any internet search engine and media ye shall wonder of the Chinese space program despite seeking to maintain discretion on the issue.)

Namely, not only equipment but also replicate replicate successful models. A clear example is his immediate response to position itself in the internet world. The Chinese TENCET (Google), XAIXIN (Facebook), BIDU (YouTube) , SINA (Twitter), are their replicative counteroffers oriented its huge population 3.100 million and its expansion to the rest of Asia.

Following the agreement IBM-LENOVO, in March 2009, COCACOLA tried to enter HUIYUAN, the largest juice producer in China. The operation was aborted by the Chinese Ministry of Commerce applying the AMA had been created a year earlier with the intention of putting out of reach of all those foreign companies strategic sectors, as defense, energy, siderurgy,…. And, apparently, also juices!!!

Countries of the World Trade Organization agreed to the entry of China in the hope that a reciprocal act. Never too late to rectify, and it seems the U.S. TOPs are changing their attitude. Currently the U.S. has reformed the conditions for Chinese acquisitions in terms of their strategic nature.

Europe is starting to take this into account despite serious financial problems some countries like Greece and Spain seem to be captaining in the EU a high tolerance to lobby China. The European Parliament has adopted a resolution earlier this year to create an agency to oversee foreign investments, the image of the Committee on Foreign Investment in the United States has already banned many Chinese investments in strategic sectors such as oil or telecommunications.

But back to the Chinese technology acquisition strategy in Europe. Two jewelry industry European car, VOLVO and SAAB, pioneering technological advances in the sector, The property passed 100% china. In August 2010 The Chinese manufacturer GEELY remember the signature acquisition Volvo exsueca U.S. auto group Ford amounting 1.800 million in October 2011 Dutch society Swedish Automobile (SWAN), old SPYKER, signed an agreement with Chinese companies OTHER DA and YOUNGMAN for sale 100% Saab Automobile and its UK subsidiary amounting 100 million. For Chinese technology stocks offset losses which were the oldest and most prestigious European companies. Again reacted more strongly to U.S. and Europe GENERAL MOTORS, former owner of Saab, refused to allow the technology licensing agreement of the Swedish firm which still belonged to him. SAAB factory in Trollhattan, in southern Sweden has been almost two years and stop Chinese new jobs were repeated.I have some questions: Do you lose more than Europe which reflects both companies' balance sheets? Will you continue faithful Western consumers relying on these brands with the same pride that motivated their purchases before?

Let's change the industry. In December 2011 the Portuguese government, to reduce its public debt, sold its stake in EDP worth 2.693 million to the utility CTG (China Three Gorges), who with the 21,3% actions became the largest shareholder in EDP, ahead of Iberdrola (6,79%), by offering 3,45 EUR / share. And it also became the majority of the Spanish HC (Hydroelectric Biscay). The offer of the German E.ON, not as competitive as it featured 3,25 EUR/acción, was rejected by the Portuguese government. Iberdrola along with other minority shareholders have contested and disputed this decision. The question is: How scored in the tabulation of the decision the political value of the power in the hands of a non-democratic? Obviously less than 3,45-3,25 = 0,20 EUR/acción, ie leEUR / share millones de euros. The Portuguese government TOPs passed control of the largest energy company in Portugal to a non-democratic country with Asian economic model asymmetric 156 millones de euros. Domillionfalls within the concepts of Corporate Social Responsibility? Is it right to invoke the free market when one party does not practice?

But perhaps the most disturbing element of Chinese technology penetration is that this is done by a country with a new political system, the "Communism-consumerist", emerging after the virtual disappearance of Soviet communism and the current crisis of capitalism, and where human rights are not respected, where inequalities are increasing, where even internet is free. Well, the scrupulous Europe that once required both to Spain and other countries under dictatorships, looks away without mentioning this issue in bilateral meetings and agreements with China.

International Director NGO CHRD (Chinese Human Rights Defenders), Renee Xia, said that "2011 was the year's most repressive since the movement of rights began in 2000".

Clearly, there is a shortage of CSR in the government of the PRC.

(In the next article we will discuss the asymmetry of the balance of payments Spain-China, social inequalities as the Chinese have moved to our country and as the Central Government and the Autonomous compete in pleasing the mighty dragon of economic unabashedly political party)

RELATED TOPICS:

–  Asymmetry China vs Europe

– Not everything is high tech in China. Video circulating on the Internet as the attachment with malicious zeal to discredit the industrial giant.

AUTORREFLEXIÓN:

–Are we facing a socio-economic business before the powerful competitor with excessive ambition domain?

– Should the EU, Proski as advocated in the previous post comments, block legally binding on its members, any acquisition of large public or private companies to have legislative reciprocity for European companies in China?

– Chinese space program: ¿Research and technology for military purposes or lid?


2 Responses to China. Technology penetration

  1. Protection says:

    That is the key issue of reciprocity that both Legislative and TOPs as middle managers manage visionary and ask before you make any decision …….What may be the fate of a country “delivery” strategic sectors to China?

    • Rafa says:

      Protection, you're right. not enough “blame” the TOPs. Managers also have a huge responsibility. And I think certainly in them , rather than the TOPs, is the best hope of regeneration. We must all work in this line.

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