|China Excels In "No Nonsense" Manufacturing|
A key part of the plan centers around both state-owned and private firms investing in and acquiring foreign companies for the purpose of stealing their technological innovations. Global investment numbers show that in 2016, the top two industries in which Chinese firms engaged in foreign acquisition deals were manufacturing (at about $30 billion) and information technology/software (about $26.4 billion). It is also important to note that in order to receive permission for foreign companies to do business in China it is common for the Chinese to insist the company shares and transfers their tech knowledge to their Chinese joint-venture counterparts which excel in "no-nonsense" manufacturing.
This transfer of technology has been confirmed in reports by both the Office of the U.S. Trade Representative and the EU Chamber of Commerce in China. A 2017 U.S. government survey of the U.S. integrated circuit industry found that 25 companies had to transfer their technology and form joint ventures with Chinese entities as a condition of operating in China. The same intense pressure is put on European companies which is a clear indication that China has no intention of being locked into producing low-end manufacturing of basic goods but is determined to move into high-tech products. Not only can it be seen in the intense pressure they put upon firms to share trade secrets but in China's strong industrial espionage sector which is geared to wrestle away these valuable gems when they are not voluntarily shared.
|China Is Building A Slew Of Cutting-Edge Weaponry|
Circling back to the issue of China and its strategy going forward, people are naive if they do not recognize China will do everything possible to exploit the distinct advantage a state-driven economy has over free enterprise, With an expanding military armed with a slew of modern cutting-edge weapons produced at home China intends to be ready to flex its muscle if necessary. Predatory in nature, such systems have the ability to quickly exploit the weaknesses of its competitors. It is important we recognize China is a state-run economy based on a business model that is geared to expand by crushing the competition. Subsidizing those companies working within its system in a multitude of ways helps it achieve this goal. Countries that export goods at slightly below cost in exchange for manufacturing jobs are not stupid they are predatory and we in America are their prey.
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The second part of this series has now been published and the link is below.
Footnote; The following posts relate to the article above
http://China State-Driven Business Model.Geared To Expand html
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