4 ms·

Imagine if another country threatened to cancel an American company unless they merged with a local firm and paid a one-off bribe to the government.

nimish 6y ago
Boy have I got news for you about foreign direct investment regulations....
- e9 6y ago
  Please do tell
  - dodobirdlord 6y ago
    This is, to begin with, essentially how operating in China works. Uber was forced to sell their Chinese operations to Didi Chuxing, AWS is prohibited from operating datacenters in China and forced into partnerships with local telecom companies, Google's services are uniformly banned. Operating in China means forming a partnership with a local company that you must turn over your IP to, before eventually you are kicked out of China so that the partner company can take your place entirely.
    - DiogenesKynikos 6y ago
      Uber wasn't forced to sell their operations. They were bleeding cash in their competition with Didi for Chinese market share, so they made a deal. Didi took over Uber's operations, and Uber got a 15% stake in Didi. Only certain sectors in China have joint-venture requirements. Over time, more and more sectors are being freed from those requirements. These sorts of regulations are allowed for developing countries under WTO rules.
  - nimish 6y ago
    India and China, along with basically every other country, have tons of regulations around how foreign companies can set up operations and invest in domestic markets. You cannot do business without a local partners in many industries (read: a "joint" venture in which the local "partner" will acquire your IP and eventually compete with you down the road). Foreign ownership is restricted. It was big news when China mildly liberalized its laws earlier this year and only as a gesture in the ongoing trade disputes.
    - bohadi 6y ago
      Maybe Washington will legislate to reciprocal effect. Not wield wierdly targeted executive order.

nimish 6y ago

Boy have I got news for you about foreign direct investment regulations....

e9 6y ago
Please do tell
- dodobirdlord 6y ago
  This is, to begin with, essentially how operating in China works. Uber was forced to sell their Chinese operations to Didi Chuxing, AWS is prohibited from operating datacenters in China and forced into partnerships with local telecom companies, Google's services are uniformly banned. Operating in China means forming a partnership with a local company that you must turn over your IP to, before eventually you are kicked out of China so that the partner company can take your place entirely.
  - DiogenesKynikos 6y ago
    Uber wasn't forced to sell their operations. They were bleeding cash in their competition with Didi for Chinese market share, so they made a deal. Didi took over Uber's operations, and Uber got a 15% stake in Didi. Only certain sectors in China have joint-venture requirements. Over time, more and more sectors are being freed from those requirements. These sorts of regulations are allowed for developing countries under WTO rules.
- nimish 6y ago
  India and China, along with basically every other country, have tons of regulations around how foreign companies can set up operations and invest in domestic markets. You cannot do business without a local partners in many industries (read: a "joint" venture in which the local "partner" will acquire your IP and eventually compete with you down the road). Foreign ownership is restricted. It was big news when China mildly liberalized its laws earlier this year and only as a gesture in the ongoing trade disputes.
  - bohadi 6y ago
    Maybe Washington will legislate to reciprocal effect. Not wield wierdly targeted executive order.