American assets continue to fall into Chinese hands

[Omaha Steve]

http://www.howtobuyamerican.com/bamw/bamw-100120.shtml

American assets continue to fall into Chinese hands
Our Buy American Mention of the Week!
by Roger Simmermaker
January 20, 2010

As the U.S. economy seeks to secure some sense of stability, more American assets are falling into the eager, acquisitive hands of Chinese-controlled companies.

Chinese-owned Sichuan Tengzhong Heavy Industrial Machinery finalized a deal to buy GM's Hummer brand last October. Chinese-owned Zhejiang Geely Holding Group Co. is close to finalizing a deal to buy Ford's Volvo brand. China-based Zhongding Sealing Parts Co., Ltd. acquired the assets of Michigan Rubber Products, Inc. last November. And now, a Chinese artist will sculpt Dr. Martin Luther King Jr. when his memorial is constructed using Chinese granite. Memorial building blocks supplied from a communist country would seem inconsistent with the three themes of accompanying the MLK Jr. Statue: justice, democracy, and hope.

The new Chinese owner of Hummer will locate its U.S. subsidiary in Michigan only after the state offered over $20 million in tax credits while the new Chinese-owned company has committed a substantially-less $9.4 million for the new facility. One might wonder how much longer America's economy can stand allowing states to offer competing tax giveaways to foreign companies (Tennessee and South Carolina also submitted bids) in an attempt to get our own economy on stable footing.

The substance goes far beyond the symbolism implied in these Chinese buyouts of American companies and brands. When U.S. companies are acquired by foreign owners under the positive guise of so-called foreign investment, it's not just about American jobs; it's about American independence.

We can no longer claim to be an independent nation if our manufacturing base is under foreign ownership and foreign control. Sure, American workers will be paid for their labor, but the profits will accrue to foreign companies in foreign lands, and the taxes paid on those profits will be paid to foreign treasuries. Remember that the next time you wonder why there isn't enough tax revenue to go around for a healthier health care system, a stronger national defense, a safer NASA Space Program, better public schools, or well-equipped public hospitals, public colleges, public libraries, fire departments and police departments.

FULL story at link.

[dkf]

1. Why do we want hummer to exist period?

Good riddance. If the Chinese want to become the symbol of excess more power to them.

And the Chinese own us because we can't pay our debts. It's not their fault we've dug this hole.

[izquierdista]

2. Fall?

Apples fall. Leaves fall. These jobs were thrown by traitorous American CEOs only interested in THEIR bottom line.

[madokie]

17. Exactly right

No other way to see this and until we collectively see this nothing will happen to change it. People wake up we're loosing the battle here.

[treestar]

3. Your last paragraph would make outsourcing seem OK

When the Chinese open a factory here, it's a bad thing? At least the jobs would go to Americans. Those who panic at outsourcing should be happy at least.

And they will pay their taxes here. I don't see them getting out of that. Maybe you can quote sections of the tax laws that provide they get out of them if they pay them in China, but it's usually the other way round.

[Elwood P Dowd]

5. Can you not read?

The profits go back to China rather than staying in the US and circulating through the economy. Foreign corporations practice transfer pricing and pay little in taxes over here. Why are you ALWAYS against American workers? Why are you the absolute most anti-American on this message board? Why do you continue to support insane trade and outsourcing policies that have cost this country millions of jobs and trillions of dollars in current account deficits? How bad does it have to get before you wake up?

[treestar]

6. I was only pointing out that is the reverse of what people claim is so bad!

My god, you are a mean spirited person. I am only trying to figure out what is real here, just because I don't always follow the "chinese are always evil" meme does not mean anything you've said in your self righteous twittery!

Then if we move a goddamned factory to China you effing jerk, don't WE keep the profits rather than leaving them in china and do WE pay their taxes?

If a Swedish company locates here aren't we stealing the Swede's jobs?

I just don't have people and consider them inferior for not being American. Well excuuuuuuuuuuuuuuuse me!

[Elwood P Dowd]

7. Your little short anecdotes don't change the big picture.

The balance sheet shows we're losing jobs, losing tax revenue, and losing cash flow from profits. Sure, a few jobs are created by foreign companies moving here. A few taxes are paid. However, the bottom line shows a negative current account balance, negative job creation, and falling incomes due to our insane trade and outsourcing policies. An American President was arguing with Congress about building railroads back in the 1800s. Congress wanted the British to build the railroads. The President wanted American companies to build the railroads. His statement to them went something like this, "We can have the British build the railroads. We will have the railroads and they will have the money. Or, we can build the railroads and have both the railroads AND the money".

[Sintosol]

8. Transfer pricing has rules

Companies break those rules at their own peril and major tax penalties. These rules are created to prevent most international tax evasion schemes so this argument doesn't fly with me. Besides, I doubt Hummers will make much profit in the near future since the price of gas will make people think twice about owning their own equivalent of a tank.

edited.

[Elwood P Dowd]

12. According to this it's still going on.

Or at least it was in 2008.

http://www.tpweek.com/Article/1995206/Transfer-pricing-helps-companies-in-the-US-avoid-tax-.html

[PufPuf23]

15. Economics is local and capital is global

Hence Corporate brands suck capital out of local economies.

Politicians offer incentitives for corporations that damage local small business and reduce wages for workers and remove capital from small entrepreneurs and local or regional commmunities. Indirectly this also devalues regional natural resources and increases transaction and transportation costs that accrue to corporations as another profit center. This makes for much simpler accounting and multitudes of the economic term moral hazard but plays havoc on the common man and planet.

Etc. Learn not apologize.

[Speck Tater]

4. Plus, now Chinese business owners can call the shots in US elections by pouring in money. nt

[RB TexLa]

9. We as every nation on the earth are dependant on each other.

Nationalism is a mental illness.

[Elwood P Dowd]

14. Yes, we are now dependent on China

for the slaves to make our shit, for all the lovely pollution they give the world, for financing our massive deficits, and for their creative currency manipulation.

[Kip Humphrey]

10. When do Chinese wage scales kick in? I wonder.

[malaise]

11. Ford's Volvo??

Spare me - Ford did the same thing and gobbled up the Scandinavian brand.

[RB TexLa]

13. Nationalistic thought prevails too much here. Remember it's good if done in tha name of 'Merica!

[malaise]

16. Indeed

:hi: