Friday, September 10, 2010

Calling their bluff - Steven M. Dickinson - China Economic Review

Calling their bluff - Steven M. Dickinson - China Economic Review

"Criticism of China seems to be in fashion. The American Chamber of Commerce reports that a growing number of its members say they no longer feel welcome in China. Jürgen Hambrecht, chairman of German industrial giant BASF (BFA.LSE, BAS.FWB), used a meeting with Premier Wen Jiabao to complain that foreign firms are being forced to hand over technology to Chinese rivals in exchange for market access. Peter L?scher, his counterpart at Siemens (SI.NYSE, SIE.FWB), used the same meeting to criticize restrictions on investment in certain sectors.

Jeffrey Immelt, CEO of General Electric (GE; GE.NYSE), also referring to Beijing's technology transfers requirements, bemoaned that he is unsure whether China wants "any of us to win, or any of us to be successful."

All of these groups have been strong supporters of China in the past, so the change in attitude is somewhat alarming. But what is the source of this negative feeling? And does it suggest that foreign investors, tiring of China, will turn their attentions elsewhere? . . . "

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