Prelude to Spyker SAAB Lawsuit – Euphemistic Audacity: eMOTION! REPORTS.com Responds to GM China’s Kevin Wales’ Praise of “Innovation Through Commercialization”

Cadillac AERA Concept Embodies Paradigm Shaping Performance, Efficiency and Collision Avoidance Technologies Image: GM

 “Once Again, The Chinese… Have  Proven Themselves Masters of the Endgame, and True Progeny of Sun Tzu…”  -Myron D. Stokes, Publisher and the eMOTION! REPORTS.com Industry Analytics Team

Euphemistic Audacity: eMOTION! REPORTS.com Responds to GM China’s Kevin Wales’ Praise of “Innovation Through Commercialization”.

Excerpt:    “What Kevin Wales euphemistically calls China’s process of ‘Innovation
through commercialization’ 
to accelerate technology prove-out and
utilization, is simply considered, by every other industrialized society, as
theft, industrial espionage, illegal acquisition of intellectual property,
patent right infringement, unfair trade practice by government subsidization…

“In other words, economic war on a massive scale, coupled with an endgame
strategy epitomizing zero sum. Grammatically, we rank ‘Innovation through commercialization’ right along with ‘ethnic cleansing’ in sheer euphemistic audacity.

“Mr. Wales and other GM executives have played -willingly or unwittingly- into the most reprehensible example of (perhaps) illegal transfer of wealth, technology, production process and economic stability at the DNA level in the history of the world. And of greater concern, a concomitant compromise of US national security through provision of sensitive
technologies -like the neodymium magnets pioneered by former GM subsidiary
Magnequench which was itself inexplicably purchased by the Chinese in the same
time frame GM resumed sales in that country- with weapons applicability to
China’s military.  No, Mel Brooks (History of The World, Part I) is not laughing, nor is Ford amused amidst  recent reports of an F-150 ‘commercialization’ by a Chinese car firm.   And yes, you should be worried: The Once Great Britain learned the hard way as it woke up to the fact that world-renowned brands spawned within its borders were now owned by offshore others, while reducing its manufacturing base capacity to pre-industrial levels.”     Go to full analysis

A Formidable Weapon in GM’s Repertoire of Ultra-High Performance Cadillacs: 2013 CTS-V Coupe.  Publisher Myron D. Stokes’ experience with the CTS-V Sedan in California convinced him that in their price class, the V-Series Coupe, Wagon and Sedan may be the finest luxury performance vehicles in the world. Image: GM

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SAAB – Swedish Automobile, Sweden Government, Pang Da and Youngman Take Note: United States China Economic and Security Review Commission (USCC) Report – “An Analysis of State-owned Enterprises and State Capitalism in China.”

“All warfare is based on deception. Hence, when able to attack, we must seem unable; when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near. Hold out baits to entice the enemy. Feign disorder, and crush him.”  Sun-Tzu; 6th Century C.E.

Publisher’s note:  As can be readily inferred from this latest United States China Economic and Security Review Commission Report, companies doing business, or seeking to do business with China must never, ever, forget they are dealing with a communist, dictatorial regime that has created a facade of privatization to lure foreign business entities to their shores with the ominous, insidious intent to extract proprietary technology and process.  And then, unceremoniously, discarding of the carcass while simultaneously preserving, with the skill of a taxidermist,  the external aesthetics and internal workings of firms (read; GM) deemed critical to their ideological, militaristic and economic mission.   Too late, too many companies and their governments, most recently SAAB-Swedish Automobile and Sweden, are finding this to be a sad, if not shocking, reality.

Indeed, Sun Tzu should be required reading for anyone desirous of doing business with the world’s oldest continuing civilization.  To not do so is tantamount to mounting a military campaign without weapons…   

– Myron D. Stokes

A Timeless Engineering Marvel: The Great Wall of China Image credit: CND.org

From the USCC Release:

Washington, D.C.  –   Today (10/27/11) the U.S.-China Economic and Security Review Commission released a new report, “An Analysis of State-owned Enterprises and State Capitalism in China.”

China’s breathtaking economic growth, has often led observers to assume that the
country’s economic system has been transformed into a capitalist economy dominated by
private enterprise.  Although China’s reliance on private enterprise and market-based
incentives has been growing, and the CCP’s treatment of private enterprises and
entrepreneurs has been changing, it is a mistake to minimize the current role of the
State and the CCP in shaping economic outcomes in China and beyond.  The Chinese
government and state-owned enterprises (SOEs) remain potent economic forces.  Indeed,
some of China’s SOEs are among the largest firms in China and the world.  They are
major investors in foreign countries.  They have been involved in some of the largest
initial public offerings in recent years and remain the controlling owners of many
major firms listed on Chinese and foreign stock exchanges.

Previous reports and analyses by academics and policy experts have estimated that
Chinese SOEs, and other state-affiliated enterprises, hold a lower share of China’s
non-agricultural GDP than that estimated in this report, which provides a
comprehensive analysis of that country’s control and influence over its economic
enterprises.   This report tracks testimony heard by the Commission that China’s
privatization reforms have, in some cases, reversed and that the state sector is
strengthening.

The report concludes that:

·         SOEs and entities directly controlled by SOEs, accounted for more than 40
percent of China’s non-agricultural GDP. If the contributions of indirectly controlled
entities, urban collectives, and public Township and Village Enterprises (TVE) are
considered, the share of GDP owned and controlled by the state is approximately 50
percent.

·         The share of GDP accounted for by the non-state sector, including foreign
invested firms without ties to the government of China, is also approximately 50
percent.

·         Based on the current direction of economic policy making in China the state
sector will continue to play an important role in China, even if its share of GDP
shrinks further.

·         China’s SOEs are potentially formidable competitors because they benefit
from a number of government preferences in China.  Based on recent U.S. regulatory
filings by SOE-owned entities, SOEs and their subsidiaries benefit from preferred
access to bank capital, below-market interest rates on loans from state-owned banks,
favorable tax treatment, policies that create a favorable competitive environment for
SOEs relative to other firms, and large capital injections when needed.  Further,
Chinese SOEs also appear to dominate China’s expanding government procurement market.

·         When it joined the WTO in 2001, China promised that the government would
not influence, directly or indirectly, the commercial decisions of SOEs. China does
not appear to be keeping this commitment. The state very much does influence SOE
commercial decisions and the most recent five-year guidance does not herald that this
is changing. If anything, China is doubling down and giving SOEs a more prominent role
in achieving the state’s most important economic goals.

·         For some U.S. firms whose participation in China’s economy facilitates the
government goals, China will continue to be a profitable market. For others,
especially those in strategic and emerging industries that the government is
targeting, the Chinese market may become far less hospitable. (italics ours)

-Endit-

This report was prepared for the Commission by Capital Trade, Incorporated.  It can
be found online at:
http://www.uscc.gov/researchpapers/2011/10_26_11_CapitalTradeSOEStudy.pdf

Press Contact:

Jonathan Weston

202-624-1487

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Defence Policy Analyst: “China’s Arrogance and Belief They are Next World Power Makes War With US/UK Inevitable and Soon”

chinese-flag-640_0_0.jpgDecember 13, 2010 (PressReleasePoint)– Washington, DC    Comments subsequent to an Asia tour this year from a highly respected defense policy analyst who has served in previous administrations, seem to confirm the concerns by several key officials within the US Department of Defense, the UK Ministry of Defence and the crafters of a recently released report by the United States-China Economic and Security Review Commission (USCC.gov) that China is on a collision course with Western powers extending beyond the reality of its sustained economic war against other countries.

yag_Now_Shi_Lang_PLAN13-2007-Dalian-Overhead.jpg  Chinese  Carrier Shi-Lang at Dalian Yards.This 67,500 Ton Kuznetsov-class Vessel, Originally the Ukraine’s Varyag,is Operational Now According to Our Intelligence Sources, Not 2015 as recently reported – Image PLAN

“The arrogance, dismissiveness and disrespect for the US in particular by senior Chinese officials during our visit was not only profound, but deeply disturbing,” said this analyst, speaking on condition of anonymity. “China’s current rate of growth is unsustainable, so much so that if it were to continue for the next two decades, another planet earth would be required. Even more alarming is that when presented with clear data supporting this contention, our Chinese colleagues made it obvious that “‘Even if it is necessary to grow beyond our borders, the current initiatives and policies will be maintained.’

“China”, the analyst continued, “is convinced that supplanting the US/UK as the dominant super-power; is within its grasp and will brook no conversations, observations, recommendations or warnings that suggest otherwise. Moreover, the idea that China can be dealt with based on a perception of a melded Confucianism/Shinto/Buddhist ideology-based paternalistic benevolency, is completely without merit. And is indeed, downright dangerous.

Confucian Philosophy Eliminated

“The quiet wisdom advocated by Confucius calling for respect of all others while being defenders of justice, has completely disappeared from China’s philosophy of governance; the victim of the Cultural Revolution initiated by Mao.” Suffice it to say that China 2010 is ideologically the mirror of Communist China 1949.

“Those who focus only on the potential of doing business within an explosive China economy,” he said, “while turning a blind eye to its stunning, ominous, military build-up, may find themselves in a most uncomfortable position as major global firms lose control of their China operations in a manner consistent with Buffett BYD plant confiscations. At the same time, the break out of hostilities against Japan and Taiwan is a distinct near to mid-term possibility.”

The analyst’s observations are well supported by learned others:

In his opening statement, [United States-China Economic and Security Review] Commission Chairman Dan Slane said “The 2010 Annual Report (released 17 November) reflects the Commission’s conclusions that China has failed in some notable areas to fulfill the promises it made nine years ago when it joined the World Trade Organization. Specifically, China is adopting a highly discriminatory policy of favoring domestic producers over foreign manufacturers. Under the guise of fostering “indigenous innovation” in its economy, the government of China appears determined to exclude foreigners from bidding on government contracts… In addition, China has proposed that its many state-owned corporations be exempt from WTO rules on procurement. The Chinese government quite simply intends to wall off a majority of its economy from international competition.”

In her opening statement, Vice Chairman Carolyn Bartholomew commented on China’s military modernization, saying “As a result of China’s improved offensive air and missile capabilities, the Chinese military has strengthened its capacity to threaten U.S. forces and bases in the region. Currently, China’s conventional missile capabilities alone may be sufficient to temporarily knock out five of the six U.S. air bases in East Asia. Saturation missile strikes could destroy U.S. air defenses, runways, parked aircraft, and fuel and maintenance facilities. Complicating this scenario is the future deployment of China’s anti-ship ballistic missile, which could hold U.S. aircraft carriers at bay outside their normal operating range.”

Western Companies Warned

The analyst further advised that “Western companies, inclusive of GM, Ford, VW, Boeing and Airbus, with significant investment in China-based manufacturing infrastructure and the proprietary processes PRC officials have demanded as a requirement to do business in the world’s most populous country, should thoroughly examine — Japanese companies have already done so — their exit and loss prevention strategies… now.”

Press Release: http://www.pressreleasepoint.com/defense-policy-analyst-quotchina039s-arrogance-and-belief-they-are-next-world-power-makes-war-usuk-i

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About eMOTION! REPORTS.com:

eMOTION! REPORTS.com (http://emotionreports.com http://emotionreportscom.blogspot.com/) is an automotive/aerospace industries research and analysis site targeting professionals within the academic, media, corporate and government sectors. The site also created a pathway through which white papers and other scholarly works such as “Crisis On Asimov: A Vision of 2085” by national security strategist Dr. Sheila Ronis; “Quantum Parallel: The Saint-Hilaire Quasiturbine as the Basis For Simultaneous Paradigm Shift in Vehicle Propulsion Systems” and “Super-Globalism: Strategies For Maintaining a Robust Industrial Base Through Technological, Policy and Process Improvement”, could be presented to a broadened yet specific audience.

Publisher Myron D. Stokes is an award winning veteran automotive/aerospace industry analyst and spent several years as an industry correspondent for Newsweek, Newsweek Japan and Newsweek International. His.work as an journalist with special emphasis on business and technology has been published in a variety of other major print mediums including the Detroit News, Changing Times Magazine, Auto Week and corporate publications. Over the years, he has provided major corporations and media groups with “deep background” analyses that have helped shape the direction of some of the most significant news stories and industry strategies After outlining a strategy to expand industry coverage for Newsweek Magazine in November of 1991, he worked in the capacity of industry correspondent and investigative reporter. His reporting included in-depth assessments of the “shake- up” at GM, the much publicized industrial espionage charges against former GM supplier executive Dr. Ignacio Lopez; the hazards of doing business in China; the viability of Electric Vehicles which centered on advanced battery technology in both the private sector and military (Newsweek International edition); the difficulties then facing Japan’s auto industry and the comeback of the Big Three (Newsweek Japan).

In recent years, he has covered some of the most recognized stories in automotive, aerospace and general interest. These include the Kirk Kerkorian Chrysler takeover attempt; the GM C/K truck controversy; the U.S./Japan trade issue (Newsweek Japan) which required significant interaction with then Secretary of Commerce Ron Brown;data for Newsweek cover story (4/95) on Airline Safety; investigative analysis of possible collusion between the warring governments of Bosnia President Alijah Izetbegovich and Serbia President Slobodan Milosevic along with uncovering of plan to re-implement ethnic cleansing prior to Srebednicza massacre (6/95); and the Oklahoma City bombing. His ability to thoroughly and accurately report and analyze issues of substance garnered himself and former Newsweek Detroit Bureau Chief Frank Washington first place in the coveted Detroit Press Club International Golden Wheel Award for Automotive Journalism in 1995. This competition, judged by professors from the University of Nebraska School of Journalism, included entries from 110 journalists in five countries. Business Week took second place. Stokes was also privileged to function as acting Detroit Bureau Chief for Newsweek.

Stokes maintains strong interest in global affairs, and continues to be involved in a range of nation building and humanitarian/disaster relief efforts. Among these were acting as initial intercessor between UN Secretary General Kofi Annan and the then warring governments of Eritrea and Ethiopia; an activity which helped lead to the cessation of hostilities in October 1999; the coordination of relief activities with US, European and Middle-East based colleagues subsequent to the Bam, Iran, earthquake of 2004, the Pakistan earthquake of 2005, and co-structuring of academic and industrio/economic base developmental programs with colleagues in Pakistan and India.

Associate Publisher, Motorsports Editor, John T. Chuhran has covered motorsports as an award-winning journalist for more than a quarter century. From 1992-94 he served as Director, Media Relations and primary spokesman for Championship Auto Racing Teams, Inc. (CART) the governing body for the PPG Indy Car World Series. For more than two decades he has been a sports writer and editor for such media as The Philadelphia Bulletin, Gannett Westchester (NY) Newspapers, the Bridgewater (NJ) Courier-News, the Associated Press, United Press International, BBC Radio and the Reuters News Service. He has served as communications Manager (Product), Press Fleet Supervisor and Press Information Specialist of Mercedes-Benz North America where he was responsible for all motorsports and professional sports activities of the company. He also has been the primary media professional at a selective New York City investor relations firm where he optimized media exposure for several companies that launched IPOs and Secondary Offerings. During this time, he was also the de facto Media Relations executive responsible for all media activities of the Professional Sports Car Racing series (now known as IMSA) during the ownership of Andrew Evans. Currently, Mr. Chuhran manages the media centers at several NASCAR racetracks during event weekends, and he maintains extremely positive relationships with the motorsports media. He also continues to write as a contributing editor for motorsports outlets such as The Star (Mercedes-Benz) magazine.

As a primary result of analytical accuracy and depth of content, ER yields notable Google search responses to quasi-generic terms such as “2010 Automotive Industry Analysis” (6,9 and 10 of 94,500,000 returns 12/13/10). Now approaching a decade of existence, The eMOTION! REPORTS.com global team includes some of the most capable journalists and analysts drawn from media, government and academia.

Web Editor: Matthew Siporin

SOURCE: U.S. “ENCOURAGING” CHINA’S SAIC TO SEEK CONTROLLING STAKE IN GM DESPITE NATIONAL SECURITY RISK

SOURCE: U.S. “ENCOURAGING” CHINA’S SAIC TO SEEK CONTROLLING STAKE IN GM DESPITE NATIONAL SECURITY RISK.