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Additional resources for American Wheels Chinese Roads
Chairman Lu replied: “It is better to go through you first, unofficially. ” When he got back to Detroit, Chen met with Swando and gave him the news. To stop the flood of imports, the country needed to build a high-quality, modern, luxury sedan inside China. SAIC wanted to know: Was GM interested? When Swando first got word of this from Chen, his gut told him that this was GM’s big opening in China. Swando also knew that one of the first questions coming from his bosses would be: “Okay, that’s good news, Swando.
And officials in Beijing put in place the rules for any car maker interested in joining the effort: 1. No foreign company can produce cars in China without first forming a joint venture with a Chinese partner. 2. The foreign share of ownership may not exceed 50 percent. 3. To form an automotive joint venture, a foreign company must first secure approval from the central government. All models to be produced by the joint venture must also secure prior approval. A list of discouragingly prohibitive rules was often followed by declarations that China enthusiastically welcomes investments by foreign companies.
By 8:30, however, some of the executives were annoyed. They summoned the organizers of the show for an explanation. ” they asked. ” The unspoken question: Is that “Yes, he is coming,” or “No, he is not coming”? “He did not say that he was not coming,” repeated the young show official with a straight face. That was the message from China—the house at this casino. You are invited to play the game; you may enter and stay on our terms. If you choose to leave, then you bear the consequences. , the minister did arrive, surrounded by half a dozen smiling security personnel.
American Wheels Chinese Roads by Michael J. Dunne