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China's top economic planner has floated the idea that foreign players who supply green vehicles and parts must partner with local partners and cap their holdings at 50 percent, a major setback for companies such as Delphi Automotive.

http://www.reuters.com/article/2011/04/21/autoshow-china-partspolicy-idUSL3E7FL0FD20110421

Well, that sucks. How will this affect the billions GM spent on Voltec? This appears to be little more than legalized theft of intellectual property and process. The Sopranos would be in heaven.
 

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Steverino, this is a very serious issue. The Chinese have used this tactic over and over. They force foreigners to partner up, then they steal the tech. They start out with low ball percentages on production and supply and then by the end they require 90% or more to be domestically produced.

Congress and the rest of the world better wake up and smell the coffee or start boning up on their Mandarin.

A recent iteration of this tactic was how China has manipulated its way into the lion's share of wind turbine market, and it was prompted this post:

http://fordfocuselectric.com/forums/viewtopic.php?f=8&t=162
 

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They dont want white devils coming into their country and abusing the low cost labor available.. so its simple, you come in willing to partner (and sharing your tech and know how) with the locals or you stay the hell out. The days of the East India Trading Co. are long over.

http://en.wikipedia.org/wiki/East_India_Company

No company wants to be out of the Chinese market because they will be biggest market in a few years.. dont forget their gov is run by engineers, not lawyers. The again, the county is on the bare edge of implosion, they have to be careful.
 

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Not exactly East India All over

They dont want white devils coming into their country and abusing the low cost labor available.. so its simple, you come in willing to partner (and sharing your tech and know how) with the locals or you stay the hell out. The days of the East India Trading Co. are long over.

http://en.wikipedia.org/wiki/East_India_Company

No company wants to be out of the Chinese market because they will be biggest market in a few years.. dont forget their gov is run by engineers, not lawyers. The again, the county is on the bare edge of implosion, they have to be careful.
No doubt the Brits and others took advantage of the Chinese in the past, but I think the pendulum has swung too far the other way. Yes the carrot China holds out is a booming economy and 1 billion customers, but many countries are figuring out that "teaming" up with China means training them, and giving them your intellecutal property and then a decade later they "politely" muscle you out of the country, and out of every other market as well. Google "Spain, Wind Turbines, China," or any number of other industries where the Chinese have stolen IP and trade secrets and then leveraged that to put itself in a monopoly position.
 
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