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Tesla's factory was the very first foreign-owned car plant, without a domestic partner. This certainly has not been the norm in China in the past 30 years: htt

Tesla's factory was the very first foreign-owned car plant, without a domestic partner. This certainly has not been the norm in China in the past 30 years: https://www.scmp.com/business/companies/article/2154674/tesla-build-its-gigafactory-shanghai-capacity-produce-500000-cars https://www.scmp.com/business/companies/article/2154674/tesl... China may be open to goods (ignoring the capricious enforcement of customs laws). But even politically benign services (banking, finance, insurance) cannot easily be "exported" to China. It's obviously protectionism. https://www.npr.org/2020/01/16/797098404/u-s-financial-services-industry-emerges-as-a-winner-of-u-s-china-trade-deal https://www.npr.org/2020/01/16/797098404/u-s-financial-servi...

jjcc 6y ago
There are a lot of foreign-owned companies long before Tesla. In my home town Changzhou there was a famous US company called METTLER TOLEDO which exists since 1992. I lived there 20+ years ago. I had a lot of friends worked for the company. All the town knew it was a wholly owned(独资）US company. Here's the only source I can find but in Chinese. http://www.bioon.com.cn/show/index.asp?id=11583 http://www.bioon.com.cn/show/index.asp?id=11583 It mentioned 独资。There are other companies had Chinese partners called 合资 which means joined-adventure. They are different but 独资 exist as opposed to MSM claimed. Now I know you don't believe it. There are many people know the other side of story but they have been eventually down-voted out of HN to tell the truth. This one seems not quite offense to many HNer's beliefs so I'd like to provide some information. http://www.bioon.com.cn/show/index.asp?id=11583 http://www.bioon.com.cn/show/index.asp?id=11583
DiogenesKynikos 6y ago
China has been sequentially reducing JV restrictions on different sectors. The last restrictions on car manufacturing have been phased out over the last three years. As I said, Tesla is an example of this. It's silly to complain that the American market was open to Chinese investment, while the Chinese market used to have JV requirements. China had no capital to invest. Investment flowed entirely in one direction. It didn't matter to China that the US was theoretically open for direct investment. US companies made huge profits by investing in China, but not vice versa. Around 2014-15, Chinese investment abroad began to pick up, but the Trump administration has essentially closed the US market to Chinese investment, and Chinese FDI in the US has gone basically to zero. Complaining about how the poor old US is getting exploited by China - with its former JV requirements - is completely out of touch with reality. American companies made enormous profits off of investment in China. As China has developed, it has removed JV restrictions from most sectors of the economy. Whether some level of protectionism is good for developing economies is a debated topic, but the WTO allows greater leeway to developing countries. Developed countries would obviously benefit more if every developing country removed all conditions on foreign investment, but developing countries would probably suffer.

jjcc 6y ago

There are a lot of foreign-owned companies long before Tesla. In my home town Changzhou there was a famous US company called METTLER TOLEDO which exists since 1992. I lived there 20+ years ago. I had a lot of friends worked for the company. All the town knew it was a wholly owned(独资）US company. Here's the only source I can find but in Chinese. http://www.bioon.com.cn/show/index.asp?id=11583 http://www.bioon.com.cn/show/index.asp?id=11583 It mentioned 独资。There are other companies had Chinese partners called 合资 which means joined-adventure. They are different but 独资 exist as opposed to MSM claimed. Now I know you don't believe it. There are many people know the other side of story but they have been eventually down-voted out of HN to tell the truth. This one seems not quite offense to many HNer's beliefs so I'd like to provide some information. http://www.bioon.com.cn/show/index.asp?id=11583 http://www.bioon.com.cn/show/index.asp?id=11583

DiogenesKynikos 6y ago

China has been sequentially reducing JV restrictions on different sectors. The last restrictions on car manufacturing have been phased out over the last three years. As I said, Tesla is an example of this. It's silly to complain that the American market was open to Chinese investment, while the Chinese market used to have JV requirements. China had no capital to invest. Investment flowed entirely in one direction. It didn't matter to China that the US was theoretically open for direct investment. US companies made huge profits by investing in China, but not vice versa. Around 2014-15, Chinese investment abroad began to pick up, but the Trump administration has essentially closed the US market to Chinese investment, and Chinese FDI in the US has gone basically to zero. Complaining about how the poor old US is getting exploited by China - with its former JV requirements - is completely out of touch with reality. American companies made enormous profits off of investment in China. As China has developed, it has removed JV restrictions from most sectors of the economy. Whether some level of protectionism is good for developing economies is a debated topic, but the WTO allows greater leeway to developing countries. Developed countries would obviously benefit more if every developing country removed all conditions on foreign investment, but developing countries would probably suffer.