2010年4月5日 星期一

RRJ1

Reference:
Powell, Bill (March 29, 2010) what China Inc. wants next, republish by CNN. Retrieved March 29, 2010, from http://money.cnn.com/2010/03/29/autos/volvo_geely_china.fortune/index.htm

Summary:
Recently, a vast Chinese company named “Geely” bought a global famous brand “Volvo” from Ford Motor. That recalls the memory that since the computer maker-Lenovo take over IBM’s personal computer business six years ago, more and more trades between China and Western countries had been made. The Chinese car factory “Geely” uses 1.8 billion to buy Volvo from the Ford Company. This is an example that shows us the significance of that china’s tremendous markets and powerful companies for the world’s economy. China is very interested in natural resources in the world. This kind of companies belongs to the government, and is helped by state-owned banks to complete trades. Chinese uses much more money for investments than other countries do. There are only a few companies under the comfortable condition of assets in China to make deals with western countries. The Medias always disseminate the information that Chinese economic has amazingly grown up during recent two decades. Just like what Edward have said that they thought too much about this trade. The situations that China faces nowadays is not as the same as the situations that Japan in the 1990s deals with when yen was strengthened. Beijing opened the Chinese business to global only 30-year, so Tse said people expected too much to think for China. China now always focuses on the investment in the developing countries. There is a similar question for the Geely-Volvo deal. For the Chinese report, maybe $500 million come from government and $1 billion come from the state-owned Bank of China. The Ford really wants to sell the Volvo that way helps Geely, which is private company, neglecting political factors of the deal. The Geely hopes that they will get an award and move up-market for this trade. The business involving china and some western counties is not yet a common symptom.

Reaction:
Now Chinese has a lot of companies want to buy some classy brands eagerly during the session of recession. They think that these can help them expanding their influence on the global economy as soon as possible. Thirty years ago, the government of china decided to allow many typical abroad companies to build factories in China. When Chinese people acknowledged that the disparity between themselves and people in the western countries, thousands of Chinese students leaved their hometown to the United states or European countries for studying. Now those people who back to china after studying abroad get important jobs in Chinese vast companies. A big problem about how to keep increasingly foreign exchange values remains for Chinese government. The government helps some companies, either belong to the government or privately owned, if they really want to open and enlarge oversea operation. The representative example is the Geely-Volvo deal. Unfortunately, just a few companies, which have good managing conditions, get the chance. I am afraid that some of the Chinese companies use the whole country’s power to compete with other companies for natural resources in the Africa. The deals of natural sources can help china to develop the economy and makes it grows up quickly during a long period of time, but also can break the world’s business systems at the same time. Now China is still a developing country. The government should focus on how to help nationals lift up the life standards instead of paying huge amount of money to buy some abroad companies’ assets. These will create some unnecessary anxieties in some countries. In the future, there will be more Chinese companies which have enough power to do these without government support. It means china would have been on its way of developing. China right now just like a little boy who is not strong enough.

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