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This move was very puzzling to me, in light of Trump's trade tactics. Especially, of his accusations that China "steals" American technology. So, given this,
by blackrock 8y ago
This move was very puzzling to me, in light of Trump's trade tactics. Especially, of his accusations that China "steals" American technology.
So, given this, why would any new American company, choose to enter into a 51/49 partnership with China? Where China has the majority share, and where the American company must share with their Chinese partner, all the system processes, techniques, and new technology of their product.
This is just adding fuel to the fire, and the resentment that Americans have of the Chinese people.
Here, the American company is willingly entering into such a business agreement. The Chinese side is not holding a gun to the American company's head.
For the Chinese side, they are investing a lot of money into this research project, to fund this hare-brained idea. So, there is a lot of risk on their part, that nothing will emerge from this.
The alternative, is that the American company can just choose not to do it. Don't accept the money. Go it alone. Don't enter the Chinese market. The rest of the world is a huge playground as it is.
- Mountain_Skies 8y agoPolitical theater isn't the same as business opportunity analysis. Also keep in mind that the US presidency has a limit of two terms. If Trump enters into the calculations, he doesn't enter into them permanently. Transportation systems, especially rail, are long term investments.
- imgabe 8y agoIt's not like the US is investing in rail technology. If we're not going to build it, China will.
- stale2002 8y agoWhy would the american company care about "adding fuel to the fire" or "resentment"? It is their company. They presumably care about making money. And if someone offers them lots of money, why wouldn't they accept it?