I'd like to know why any of these US companies think that once China has enough of our technology that the Chinese aren't going to thank them for their stupidity and explain to the that those factories now belong to the Chinese military. Since when have communists EVER respected the "property rights" of others?! IDIOTS!
Percentage of ownership doesn't matter a hill of beans if the production facilities are located within their territorial jurisdiction. "A stroke of the pen" would be more like shooting ourselves in the foot. We'd have to run around half naked until we were able to redevelop our own production infrastructure. The Chinese, OTOH, wouldn't even notice we were gone.
WE are the ones becoming more dependent on THEM, NOT the other way around.
Normally, the Chinese government will not allow foreign control (ownership) of any enterprise in China.
This may be changing, however. China Yuchai [NYSE CYD], which builds diesel engines in China, has come up with an enron-like (?) scheme which has allowed foreigners to control this company. As a result, this stock is one of the best performing stocks in the entire US stock market over the last year.
CYD is incorporated in Bermuda, and has their headquarters in Singapore. 30% of their stock is held by Hong Leong Asia, LTD, a Singapore holding company which has the right to elect CYDs directors. CYD holds 70% of Guangxi Yuchai Machinery Company, LTD, which actually builds the motors.
"Doing business in China means dancing a minuet with special power brokers tied to the government." --Paul Wolansky, head of the Cathay Investment Fund.
He also goes on to say, "China is the most free enterprise country on earth. When you come back from China to the United States, you think you're coming to a communist country".