Posted On: Monday - January 11th 2021 11:30AM MST
In Topics:   China  Economics  Big-Biz Stupidity
(continued from Part 1: Intro and Part 2: Housing.)
The worry in the 1980s about foreign takeover of American industry was directed at Japan. The Japanese way of doing big business in America, since the 1980s, was opening plants in this country. Americans have been placated with those efforts. "The jobs are here." Yeah, well the decent line and lower/mid- level management jobs are, but the important engineering jobs aren't.
It's been the same with Nissan, Kia/Hyundai out of Korea, Mercedes, BMW,
and VW out of Germany, etc. They've all got auto plants here, almost all in the South for the cheaper labor. The control of the enterprises are foreign though, though it's nothing like looting, of course.
Perhaps the Chinese haven't done any of this because their car manufacturing hasn't been up Western and Japanese (for sure not!) quality standards, and 25 years ago they hardly had an auto industry. Secondly, they don't care about placating Americans and getting along. That is so 2000s. The way things are going, they may be able to just buy one of the big 3 lock, stock, and barrel.
CNBC here lists 10 big purchases of American "iconic brands"*.
Smithfield Foods, bought by Shuanghui Group, now called WH Group, for $7.1 Billion in '13 remained the 2nd biggest at the time of this > 3 y/o CNBC story, but who knows since then? (Well OK, the internet knows, but I've only done a quick DDG search.) It's the most famous case of the selling off of American industry. From that article we are told:
The deal spurred controversy and concern at the time, but Smithfield has thrived, adding jobs and hitting a sales record in 2014.Oh, sure, it's all fine then, right?
No, it's not alright, though. This is all about control. For the sellers of this big American food firm, and the Chinese buyers, yeah, it's about money. For regular Americans it results in essentially working for the Chinese CCP, when it really comes down to it. Once could bring up laws or proposed laws against holding of stock by foreigners, residency requirements for corporate boards, or what-have-you, but the Chinese are in charge. Follow the money.
For anyone in government actually trying to help Americans with regard to foreign influence and the trade imbalance (like President Trump has), face it, it's gonna be tough curtailing exports of pork in a trade war when the Chinese own Smithfield Foods. You'll have the whole State of Virginia against you. If you think that Big Biz is unpatriotic, and it sure is, imagine he case when it's owned by the Chinese. They'll be plenty patriotic .. to China and the CCP, though.
Other names I recognize are GE Appliances - now that's iconic. The manufacturing facilities are still there in Louisville, Kentucky, but those employees work for Qingdao Haier now. It cost these Haier folks $5.4 Billion. You can buy ~ 200 such companies with a cool Trillion bucks. The Motorola mobile phone division has been owned by Chinese Lenovo (who also bought the IMB laptop business) back in '14. That was an ~ $3 Billion purchase.
Then there are the movie theater chains that the CNBC page lists as big purchases by Chinese companies. Haha! That was dumb! Nobody expects the
A 5 y/o Yahoo (yeah, I know) page lists The Biggest American Companies Now Owned by the Chinese. The biggest purchase, money-wise, was of Starwood Hotels, bought by Anbang Insurance for $14.3 Billion in'16.
There's probably a lot more of this by now, and it doesn't help matters at all that American small business is getting creamed by the Kung Flu PanicFest. What about the big "TECH" guys, like Amazon, Google, etc? Would you bet any serious money that some of them won't be Chinese-owned within 5 years? Not this blogger. I value my money more than ... OK, it'll probably lose so much value that I don't have much to lose anyway.
* It's in quotes because I don't know 1/2 these companies. That's partly due to that I don't give a rat's ass about "League of Legends" and also the movie industry, but I guess it's a sign that they haven't got too far yet.