the black China hand

With a booming economy and $1.33 trillion in foreign-exchange reserves, Chinese companies are in a position to acquire American companies, as Japanese and West European companies were several decades ago. While those earlier acquisitions were often opposed out of fears that they would damage American economic competitiveness, the acquisition of American companies by Chinese companies is regarded with more suspicion, particularly in the high-tech sector.

Here’s my take. If a Chinese company is “allowed” to buy an American company (read: Seagate), so should an American company be “allowed” to buy a Chinese company (for example: Neusoft). The hope then would be that competition would produce the best results for all (read: the consumer) involved.

Chinese Seek to Buy a U.S. Maker of Disk Drives