Read the whole article.
“China is a cesspool of fraud and deceit.”
Necessary addition ...
“The American Federal Govt. is a cesspool of fraud and deceit.”
China’s economy is full of fraud, especially their economic stats
Around fourteen years ago...some Asian guy appeared out of thin air...bought up several major Asian sewing machine companies, and then started to find capital interest for buying Singer, along with various French, Italian, and German sewing machine companies. He was creating this massive company to manage all sewing machine empires.
So the day came when he approached a New York bank and wanted in excess of $500 million to conclude a deal for a major Russian sewing machine company. This bank was down to the final moments of the deal, and then some young executive was sent on a plane to Russia to just view the factory before they did the final approval.
He shows up in a taxi at the front gate of this factor that is over 100 years old, and in terrible shape. He spends around thirty minutes (by description of the article I read) with the security guard, and comes away with the idea that this company hasn’t made a profit in their entire history...so that’s not much of a way they are worth $50 million....let alone $500 million. They stopped the deal.
Within months....this entire empire began to fall apart, and almost every country touched by this Asian guy....ended up in bankruptcy court and taking over the old company because of incompetence in financial handling.
Communism badly hobbles China from becoming what it could be. I do not wish China ill. A free China would be a boon to the world.
The book value of a company's "investment" in China, as reported on the company's balance sheet, should be listed at $0. The only value this "investment" has is its capacity to produce large quantities of cheap crap by slave labor that can then be sold in the U.S. (and elsewhere) for a monetary return.
This is why Apple outsources the production of their iPhone components to China. The company doesn't even pretend it has a financial stake in the Chinese companies that produce these things. All Apple cares about is that these Chinese "assets" -- with no nominal value at all on Apple's balance sheet -- can produce components that are shipped all over the world and sold to consumers. The only "asset" Apple cares about is the finished product and the price it fetches in the mobile phone market.
I don’t feel the least bit sorry for them or any other American company dealing with China.
Ah, you want material certifications? Yes, we can get material certifications for you. What you want them to say?
Here is another story about China I saw today in Canada Free Press that claims that Obama is negotiating with China to sell off Federal land in exchange for debt forgiveness. Story is at http://www.wnd.com/2013/01/obama-selling-out-america-literally/#VbA8JrXk3vi9QfBS.99
chicom bump for later......
Fraud and corruption in China? Who knew?
“Paging Jackie Chan ... paging Jackie Chan ....”
http://www.freerepublic.com/focus/f-news/2977382/posts
Everything you have heard about China - good and bad - is true. China is so huge that both realities exist simultaneously.
Joint ventures with Chinse firms obviously involve much more risk than merely buying finished products, and therefore require much more due diligence. Many American companies have built successful new venture in partnership with Chinese firms. But it sounds like Caterpillar - like HP - got a little lazy with the research in their zeal to make some easy money.
I am sure the Free Trade Communists who routinely shill and support Free Trade with Communist China...will have some spin on this
StupidNomics rears its head again...getting burned by the Communist Chinese
The Commie Chinese know they can roll any American concern because of Free Trade stupidity. This nonsense will end once the US starts slapping tariffs on the Commie Chinese