11–20 of 266 posts
The article gives several possible ways to improve the situation. However, one critical way is missing imho: China forces foreign investment to always come in the form of a joint venture with a Chinese company. This practice needs to be forbidden or heavily penalized in all future trade agreements and similar international contracts.
Forbidding that practice will simply mean that you won't be doing any more business in China. Which is fine with me. It's just that CEOs that see a virgin population of over a billion consumers for their widgets can't help themselves and will agree to just about anything to be able to tap that market before their competition does.
I will not tire of repeating this for the rest of my life. We foreigners are the enemy of the Chinese. We will never, ever, ever be seen as equal partners. They will never respect Western standards. They will never have elegance or deference in the treatment of business. We have no guanxi, we are not to be trusted and they will always seek their advantage over us. I'm not saying it's bad, I'm just saying we should understand this to deal with them. Hopefully Trump is highlighting the problem and I hope that the European Union will do the same very soon.
A final example is how they have multiplied the price of masks during the COVID-19 period and have speculated, set up fraudulent companies and taken advantage of the misfortune they themselves have generated. Solidarity is not in their vocabulary, least of all with a foreigner. Now all of you Chinese from HN can downvote me.
I just can't understand why when it comes to geopolitics, HN just can't keep the discussion related to the submission? Somehow US/ western countries have to enter the discussion as a bad benchmark...
The article gives several possible ways to improve the situation. However, one critical way is missing imho: China forces foreign investment to always come in the form of a joint venture with a Chinese company. This practice needs to be forbidden or heavily penalized in all future trade agreements and similar international contracts.
Forbidding that practice will simply mean that you won't be doing any more business in China. Which is fine with me. It's just that CEOs that see a virgin population of over a billion consumers for their widgets can't help themselves and will agree to just about anything to be able to tap that market before their competition does.
I'm genuinely curious for how many companies did this short term bump in profits outweigh the long term loss by irretrievably handing over technology, business strategies, etc.
Edit for the comment below.
> legally obliged to maximise shareholder value
Fiduciary duties are not so explicitly described. A CEO must use care and be diligent when making decisions on behalf of the company and shareholders. Make choices in good faith with true belief that each choice is made with the best interests of the corporation in mind.
Hence the best interests of the corporation must be weighed between short term and long term. A CEO could argue either way that they took the decision in good faith. This is where my curiosity came from, how many of these decisions turned out to be financially successful in hindsight?
The article gives several possible ways to improve the situation. However, one critical way is missing imho: China forces foreign investment to always come in the form of a joint venture with a Chinese company. This practice needs to be forbidden or heavily penalized in all future trade agreements and similar international contracts.
Forbidding that practice will simply mean that you won't be doing any more business in China. Which is fine with me. It's just that CEOs that see a virgin population of over a billion consumers for their widgets can't help themselves and will agree to just about anything to be able to tap that market before their competition does.
And not just for doing business either, things like home ownership too. If I cannot buy a house in China (not that I'd want to pay for a Chinese house that'll last 5 years max) because I'm not Chinese then they should not be allowed buy in my country either. Vancouver, Toronto, Sydney... all have property markets destroyed by Chinese funny money.
It has to stop, but it won't due to greed. Trump is right about China
(I'm not American, don't live or work in America, and have never, or could ever, vote in an American election. Take your faux outrage elsewhere)
Earlier quoted context omitted.
Forbidding that practice will simply mean that you won't be doing any more business in China. Which is fine with me. It's just that CEOs that see a virgin population of over a billion consumers for their widgets can't help themselves and will agree to just about anything to be able to tap that market before their competition does.
This is the shortsightedness of chasing short term profits for the investors rather than a more sustainable approach of not handing over the reins to a less than trustworthy partner. I'm genuinely curious for how many companies did this short term bump in profits outweigh the long term loss by irretrievably handing over technology, business strategies, etc. Edit for the comment below. > legally obliged to maximise sh…
It seems that Mr. Saleen has suffered the same fate that my electric car company suffered in 2010. After promising us a partnership, his only intention was to obtain the technology and the secrets, at that time one of the few complete EV powertrains on the market. As soon as the contracts were signed and the technology was evaluated, two separate companies were set up based on the same technology.I have to say that t…
Earlier quoted context omitted.
Forbidding that practice will simply mean that you won't be doing any more business in China. Which is fine with me. It's just that CEOs that see a virgin population of over a billion consumers for their widgets can't help themselves and will agree to just about anything to be able to tap that market before their competition does.
I support reducing trade with china. The need for cheap goods comes with a long tail price tag. It needs to be discussed more. Many Chinese workers are in severe poverty and strengthening Chinese businesses seems to only fuel inequality.