By on November 8, 2010

It’s a done deal, says Sinocast via Trading Markets. Chen Hong, president of China’s SAIC has gone to the US. He’s not there to visit Niagara Falls and Yosemite. He’s there to negotiate how much of SAIC’s  $5.7b in cash and cash equivalents will be converted into GM stock on November 18.

GM officially posted its prospectus on November 3, and executives of SAIC have been analyzing it. They probably haven’t seen anything new. Few people know more about GM than China’s SAIC.

Buying some GM stock is probably a good investment, if only to dampen the anti-Chinese rhetoric. Have we heard anything anti-Chinese from the UAW lately?

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13 Comments on “SAIC Will Buy Into GM...”


  • avatar
    Robbie

    Great, the more money we squeeze out of SAIC, the smaller the bill that will end up with the US taxpayer…

  • avatar
    geeber

    Another example of a free-market worshipping, Republican Administration handing over our nation to the Chinese.

    Oh, wait…

  • avatar
    carguy

    Contrary to the graphic used with this article, there is nothing sinister about foreign investors. The same hysterical hype was spouted in the 80s when the Japanese apparently were going to “own America” in a matter of years. If you look beyond the anti-Chinese hysteria, the SAIC buy-in is great news for GM and for the US tax payer.

  • avatar

    That certainly is an inflammatory graphic!

    I don’t approve of the deal for one reason: in time of war, GM is a major national defense contractor. Having big amounts of foreign investment capital from a nation ideologically dissimilar to our seems to me a security problem.

    And you can’t tell me that this deal is not being done without the active (or at least tacit) approval of the Chinese government.

    • 0 avatar
      bumpy ii

      “in time of war, GM is a major national defense contractor.”

      Simce when? The point of having a military-industrial complex is that you don’t have to half-ass a ramp-up by having automakers try to build UAVs or train hackers in six months.

      “Having big amounts of foreign investment capital from a nation ideologically dissimilar to our seems to me a security problem.”

      I’m sure the Alien Property Custodian won’t mind having something to do.

    • 0 avatar
      psarhjinian

      China is more akin to the US, ideologically speaking, than people realize.  It’s a strongly corporatist nation, has a serious wage disparity issue and leans hard to social conservatism and authoritarianism.
       
      Objectively speaking, Sweden or Norway are more ideologically dissimilar to the US than China is.
       
      “Communist” is a nice label but also a wholly wrong one; both nations tilt much nearer to Italian fascism than either will admit, albeit for different reasons.

    • 0 avatar

      “Tacit approval?” Nearly all of the big Chinese automakers are OWNED by the government, one way or the other. Although officially a publicly traded company, SAIC is controlled by the Shanghai Municipal Government. SAIC had started out as a department of the municipality. In any case, no foreign investment of note by a Chinese entity, public or private, happens without official governmental approval.
      Jeez, if I want to import a container of jellybeans to China, I need governmental approvals. Several. I get them, no problem, but without the big red stamps, no deal.

  • avatar
    Mr Carpenter

    psarhjinian is right about that.  I guess I cannot really speak with authority about China, but having lived in the US for most of my life (and also having lived OUTSIDE of the US twice in my life for extended periods of time), I’m able to safely agree that the Untied Status of Amerika has slowly morphed into a fascist state. 

    The definition of which could be loosely paraphrased from how Mussolini described Fascism (and he certainly was one to know what the thing was, being a fascist dictator of Italy): “The union of state and corporate interests to the exclusion of the interests of the general population.”

    • 0 avatar
      psarhjinian

      Now, to be fair, people freak out about Fascism without really understanding the concept.  They do the same with communism and socialism and, frankly, any other -ism.
       
      Here’s a primer: if your companies are government-owned to a fault, you’re talking about communism.  If you have privately-owned companies working in concert with government, that’s corporatism.  If you remove the democratic “checks” on corporatism, you have fascism, or at least a well-paved road to it.
       
      And you’re right, this is the American problem: fundamentally, the democratic “checks” have badly lapsed and you really have two barely-differing flavours of corporatism to choose from.  This is where the fascist part comes in: it has nothing to do with jackboots or active oppression or any other Nazi trappings and everything to do with simply putting the interests of the wealthy first.
       
      It’s why the concentration of wealth is a real problem, and why the cost to entry in American politics (and the recent court decision vis a vis campaign contributions) is an even worse problem.  Even if it isn’t at the fascist level, it’s really, really easy to get it there, and very hard to un-do it when it does because of the sheer economic reality of it.  It’s also why you really do want to encourage a strong syndicalist movement: even if you disagree with it in principle, it’s one of the few effective counterbalances (and no, libertarianism isn’t; it’s too easily co-opted)

    • 0 avatar
      86er

      Now, to be fair, people freak out about Fascism without really understanding the concept. They do the same with communism and socialism and, frankly, any other -ism.

      For example, I freak out whenever a psarhjinianism is uttered.

    • 0 avatar
      psarhjinian

      I rambled on there, didn’t I?
       
      Can you blame me?  I’m stuck on a GO Train, bored out of my tree and it’s either this or watch miles of Greater Toronto industrial wasteland roll by.

    • 0 avatar
      86er

      See, that’s half your problem; if you lived in Saskatchewan, you’d be there by now.

  • avatar

    Got you. It’s actually an ancient anti-Japanese expansionism poster.
     
    Didn’t happen.


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