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Germany Suffering Chinese Protectionism

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http://www.businessweek.com/globalbiz/content/jul2010/gb20100719_691725.htm

German Business Chiefs Criticize China

At a weekend roundtable in Xian, the chairman of BASF and the CEO of Siemens faulted China for favoring indigenous suppliers and other forms of alleged bias By Andrew Willis

Two of Germany's leading industrialists publicly attacked China's business environment during a meeting with the country's premier, Wen Jiabao, over the weekend (17 July).

Jürgen Hambrecht, chairman of giant chemical company BASF (BASFY), and Peter Löscher, chief executive of industrial conglomerate Siemens (SI), added their voices to a growing clamour of criticism against Chinese rules that are seen as disadvantaging foreign firms.

Mr Hambrecht said foreign companies are frequently forced to transfer business and technological "know-how" to Chinese companies in exchange for market access.

"That does not exactly correspond to our views of a partnership," he told Mr Wen at the roundtable discussion in the northwestern Chinese city of Xian, according to German journalists who attended the meeting.

The strong statements are particularly noteworthy due to their public nature and delivery during a meeting also attended by German Chancellor Angela Merkel, in China as part of a four-day state visit.

Mr Löscher voiced widespread complaints about draft Chinese public procurement rules which are intended to support "indigenous innovation," a policy foreign companies fear could shut them out of lucrative government contracts.

The Siemens boss also called on China to remove investment restrictions in certain sectors, reported German daily Handelsblatt. At present, foreign companies can be required to form joint ventures with Chinese companies when setting up shop in China, as exemplified by the Shanghai Volkswagen Automotive company.

Mr Wen reportedly responded to the criticism by telling Mr Hambrecht to calm down, insisting that China remained committed to opening its economy. "Currently there is an allegation that China's investment environment is worsening. I think it is untrue," Mr Wen said.

But the comments from two of Europe's leading industrialists come on top of a recent survey by the EU's chamber of commerce in China which showed that foreign executives hold an increasingly gloomy outlook regarding China's regulatory setup.

The increasing fears of discrimination led the EU chamber's president Jacques de Boisseson to suggest firms may even consider pulling out of China altogether.

"Nobody should take for granted that European companies will continue investing whatever the business environment," said Mr De Boisseson.

All that knowledge transfer just to get their hands on China's mass market - more debt slaves to feed the monster in exchange for a total loss of Western supremacy. How silly.

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Mr Hambrecht said foreign companies are frequently forced to transfer business and technological "know-how" to Chinese companies in exchange for market access.

Not to worry- I'm sure a trained economist will pop up shortly to tell us that it's all part of the 'plan' ( Once they've cleared the text with whatever corporation or right wing 'think tank' pays their salary of course.)

This was so predictable, and for the following novel reason- the people running China put the interests of China first, rather than selling their country out to please a bunch of corporate scumbags.

The original concept of globalised free trade was for domestic capital to be invested in domestic sectors that were competitive globally- not for that capital to go running around the planet looking for it's next fix of cheap labour.

But the joke's on them, in the end, because the Chinese will just take the tech and screw them over.

Edited by wonderpup

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But the joke's on them, in the end, because the Chinese will just take the tech and screw them over.

And I really hope they do.

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Not to worry- I'm sure a trained economist will pop up shortly to tell us that it's all part of the 'plan' ( Once they've cleared the text with whatever corporation or right wing 'think tank' pays their salary of course.)

This was so predictable, and for the following novel reason- the people running China put the interests of China first, rather than selling their country out to please a bunch of corporate scumbags.

The original concept of globalised free trade was for domestic capital to be invested in domestic sectors that were competitive globally- not for that capital to go running around the planet looking for it's next fix of cheap labour.

But the joke's on them, in the end, because the Chinese will just take the tech and screw them over.

:lol:

Don't worry, apparently this one-way global trade agreement is very good news. As is the rampant internal Chinese inflation.

And should the chinese slaves wise up, they'll simply move industry to Africa. All very good news.

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And I really hope they do.

Those that are and will be most badly hurt are the general population. The executive swines will have left with massive bonuses by then.

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  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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