For big US companies, China has a gravitational pull like the Sun. It can’t be avoided. The huge market is just too attractive. For firms like GM (GM), McDonald’s (MCD), and Wal-Mart (WMT), who face slow growth in the US, China represents an opportunity to get back on track.
But, the Chinese unions have moved into Wal-Mart and China. And, GM’s joint venture partner, Shanghai Automotive Industry Corp, appears to be using what it has learned from GM to build its own auto empire, which may, in fact, compete with GM. The Chinese car executives make no bones of their plans to use technology from foreign car companies to build their own brands.
But, GM and its partners are the largest sellers of vehicles in China, so the temptation has simply been too great.
It would be nice to think there is some justice in all of this. That the US will block imports of Chinese products using US technology. But, that will not happen. The deal with the devil is cast. It is now a race to make money in China before the locals take it away.
Douglas A. McIntyre
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