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US companies go into China eyes wide open - they can extract a few quarters of profit from their products and services but that's it; the Chinese will then expe
by jarym 8y ago
US companies go into China eyes wide open - they can extract a few quarters of profit from their products and services but that's it; the Chinese will then expect to do it themselves and keep all the profits to themselves.
To most its not a good deal. To US companies, that are driven by quarterly targets then it is very much a case of sacrificing the future for the present. And if they stay out of China then the odds are that hackers will either steal the info anyway or another western competitor will play ball.
There's just no way to stop this happening as I see it. The best non-US companies can do is negotiate an equity stake in their local partners and hope the government doesn't pass laws to take it away.
- StreamBright 8y agoReminds me of Goolgle and Facebook comes to my country takes all the ad revenue and the country gets nothing.
- jarym 8y agoWhoever bought the ads probably get some decent marketing don't they? And any local affiliates probably get a chunk in commissions. The lions share of course go to the likes of Google/Facebook but its not totally correct to say the country gets nothing.
- Aunche 8y agoThey get Google and Facebook.
- pwaivers 8y ago> To US companies, that are driven by quarterly targets then it is very much a case of sacrificing the future for the present. This comment comes off as trite and naive. Multi-billion dollar companies like DuPont and AMD Inc do not only think a few quarters ahead. They think years or decades ahead.
- mistermann 8y agoIn some ways they do, but to what degree do senior executives, often near retirement (or wanting to hit a magic number they hold in their minds), make decisions that maximize short term returns? How would we even answer this question, considering no one really knows for sure to what degree the subconscious mind affects our decisions?