The China Lifeboat

AsiaLynx.com ^ | 12/11/2009 | Randal Rayborn

[Mr. Jeeves]

A number of recent headline stories out of China about joint ventures and acquisitions involving American companies didn't seem to get much attention in the US media, yet these stories indicate that the current economic recovery will remain jobless for some time. Is China a lifeboat for US firms, or the tugboat pulling the entire wounded US economy back to shore?

The biggest news came out of the automotive industry, where Beijing Automotive announced its intention to acquire all or part of Saab from General Motors which also announced a joint venture with Shanghai Automotive to sell small cars to India. Ford Motor Company also made headlines in China, as Geely Holding Corp. discussed details of its 100% purchase of Volvo from Ford.

"Saab is attractive for its brand and its technology", Beijing Auto president Wang Dazong said of the proposed acquisition, adding that a lack of "technology depth" is one of Beijing Auto's weaknesses. Chinese firms recognize how much technological improvement they can achieve through acquisition, and they have the cash to go shopping now that the marketplace offers them bargain prices.

...snip...

The US Government has picked its favorites, and the Administration's policies give us insight into what the next couple of years of "recovery" are going to look like: Big Business goes to the government, Medium-sized Business goes to Asia, and Small Business goes under. Those few small businesses wise and determined enough to swim to the China lifeboat have the best chance of surviving the apparent deflationary depression the American economy is headed into.

[Mr. Jeeves]

I don't like it, either, but it is what it is...

[pissant]

That’s what happens when you willingly bend over and let an enemy communist nation rape you.