MOTORSPORTS MEDIA ADVISORY: 2013 Pirelli World Challenge Championships – GT/GTS Rounds Six and Seven – Pirelli World Challenge Cadillac V-Series Challenge at The Chevrolet DETROIT Belle Isle Grand Prix

GMG Audi R8 During Qualifying For Detroit Grand Prix/Pirelli World Challenge

 Publisher’s note: In a recent phone interview with Arizona 2014 gubernatorial candidate JL Mealer, founder of Mealer Automobiles ( he advised that “It is my intent to encourage the return of a Phoenix Grand Prix -type street racing event after a 22 year absence (despite a strong attempt in 2007) with Indy Car ( and the Pirelli World Challenge Series ( ) as the signature events.  The economic stimulus of such events is well known and I see this as compatible with my revitalization/re-stabilization strategies for Arizona. I will forward any inquiries received via my email  to the exploratory committee that has been founded for this purpose.”   (
 GMG Audi R8 During Qualifying For Detroit Grand  Prix/Pirelli World Challenge Image: SCCA
Pirelli World Challenge Championships
GT/GTS Rounds Six and Seven
Pirelli World Challenge Cadillac V-Series Challenge at Belle Isle
Detroit, Mich.
Media Contact:
Dave Drimmie, Marketing & Communications for WC Vision, (416) 835-6601,
Greg Gill, Vice President of Marketing & Communications for WC Vision, (714) 598-7827,
Chris Berg, SCCA PR Coordinator, (913) 317-6966,
Belle Isle Street Circuit
13-turn, 2.3-mile Temporary Street Course
Round Six: Friday, May 31, 12:45 p.m. (EDT)
Round Seven: Sunday, June 2, 8:30 a.m. (EDT)
Green Flag:
Round Six: Saturday, May 31, 10:15 a.m. (EDT)
Round Seven: Sunday, June 2, 12:00 p.m. (EDT)
Race Lengths:
50 minutes or a to-be-determined lap count (whichever comes first)
Television (on NBC Sports Network):
June 16, 5:00 p.m. (EDT)
Live Streaming:
Starts at 9:45 a.m. (EDT) Saturday, June 1 @
Media Notes: Results are available on the AP SportsWire, via e-mail and on the Internet (
Timing/Scoring:  Live Timing & Scoring and lap notes via the SCCA® Pit Board are available for all sessions through
The Most Relevant Road Racing In the World
Celebrating its 24th season in 2013, the Pirelli World Challenge Championships have built a legacy around providing fans the most competitive road racing in the world, and the series has earned well-deserved praise the past few years from publications such as AutoWeek, Car & Driver and RACER Magazine for doing just that. But what really sets Pirelli World Challenge GT, GTS, Touring Car and Touring Car B-Spec apart from all other series is the “everyday” element it brings each event.  World-class drivers piloting production-based cars that come from more than 15 auto manufacturers – it’s a formula that has and will continue to serve the interests of manufacturers, drivers and, most importantly, automotive enthusiasts and race fans.
Changes for 2013
The 2013 Pirelli World Challenge Championships features combined class sprint races for GT, GTS and Touring Car and B-Spec. The schedule for 2013 has expanded to include nine different venues. The recently-opened Circuit of the Americas was added to the schedule this year. A 14-race schedule is planned for all classes, with the final round being run in Houston, Oct. 4-6.
Diverse Championships
This weekend, Pirelli World Challenge has 40 cars on the entry list set to race on the streets of Belle Isle. The GT entry list includes the Cadillac CTS-V, Porsche 911, Volvo S60, Chevrolet Corvette, Audi R8, Mercedes-Benz AMG SLS, and Nissan GT-R. GTS features the Ford Mustang Boss 302, along with the Chevrolet Camaro, Nissan 370Z,  Porsche Cayman S, Lotus Exige, Scion FR-S, Pontiac Solstice, KIA Optima and the Acura TSX.
Rookies, Local and International Talent
There will be three true rookies in the GTS field: Jim Taggart, Eric Davis, and Roger Rodas.
Four drivers will represent the state of Michigan in their home race in the GTS classes. Those drivers include Dane Moxlow, of Grosse Ile; Todd Napieralski, of Chelsea; Dean Martin, of Westland; and Craig Capaldi, of Richmond.
Aside from the international flavor provided by the vehicle manufacturers represented in the Pirelli World Challenge, drivers representing three countries outside the United States compete in the series. Canadian Mark Wilkins, Roger Rodas, of El Salvador, and Swede Nic Jonsson are all scheduled to compete in Detroit.
The Battle of Detroit – General Motors vs. Ford
Two Detroit-based auto manufacturers are represented in World Challenge this weekend. General Motors, with its corporate headquarters mere miles from the circuit, will be represented by eight entrants, including five Chevrolet Camaros, two Cadillac CTS-Vs, one Chevrolet Corvette and one Pontiac Solstice.
The Ford Motor Company, based in nearby Dearborn, is represented by a platoon of 10 Mustang Boss 302s.
Last year, GM dominated the podium, will this year be different?
Something for the Fans
The Pirelli World Challenge offers great access to the drivers and machinery of the series. According to venue policies, the Pirelli World Challenge allows spectators of all ages to walk through the paddock to meet their favorite drivers and see the sleek race cars moments before they take to the track for competition.
Pirelli World Challenge Takes to the Streets of Detroit’s Belle Isle
The Pirelli World Challenge GT and GTS competitors head to Detroit’s iconic Belle Isle street course for the Cadillac V-Series Challenge doubleheader event and Rounds Six and Seven of 2013. Forty cars representing 14 marques are entered for the race.
Last year Johnny O’Connell, of Flowery Branch, Ga., was able to sweep the doubleheader event for Cadillac. O’Connell scored the GT victory in Race One after polesitter Randy Pobst was involved in a first-lap crash. In Race Two, O’Connell scored his second win from pole.
Andy Lee, of Colorado Springs, Colo., was able to also sweep the weekend with two wins, after winning the pole for both races. The four wins for General Motors, of which Cadillac and Chevrolet are both part of, was extremely significant with the company’s headquarters located just miles from the race track.
While many of the 40 drivers entered for this year’s races were on the course last year, there have been significant changes made to the track since the 2012 event, in an effort to facilitate more passing. A portion of switchback turns at the east end of the circuit has been replaced with three nearly-90-degree turns, separated by sizable straightaways. Aside from the desired goal of more passing zones, the changes are expected to yield faster speeds.
Pirelli World Challenge GT: Sofronas Carries a Commanding Lead into Detroit
James Sofronas, of Villa Park, Calif., has been undeniable in 2013. Driving the No. 14 Mobil 1/GMG Audi R8, Sofronas scored at least one win during each of the three race weekends in 2013, totaling three wins in five races. Coupled with a pair of runner-up finishes, Sofronas’ success has him atop the point standings, amassing 661 points.
Sofronas, the principal at Global Motorsports Group, will again have the largest contingent of cars in the paddock, fielding two additional GT contenders and a GTS machine. The No. 24 Services Audi R8 will be driven by Duncan Ende, of Los Angeles, while Bret Curtis, of Westlake Village, Calif., pilots the No. 32 United Steel Supply/Spectra Resources Audi R8.
Andy Pilgrim, of Boca Raton, Fla., sits second in the drivers’ standings, 180 markers behind Sofronas. The driver of the No. 8 Cadillac Racing Cadillac CTS-V.R heads to Detroit following three-straight podium finishes, including a hard-fought second in Sunday’s race at Circuit of The Americas.
His teammate, O’Connell, sits third in the driver’s standings, with 461 points. O’Connell, in the No. 3 Cadillac Racing Cadillac CTS-V.R, has had a very up and down season, so far. Following the disappointment of retiring on the final lap while leading at Long Beach, O’Connell was the class of the field at COTA’s Saturday race, notching his first win of the year. A day later, he would feel much the same sting from Long Beach, dropping out of the race from the lead, with  a broken steering component on lap three.
The K-PAX Racing teammates of Randy Post, of Gainesville, Ga., and Alex Figge, of Denver, sit third and fifth in the drivers’ points, respectively. Pobst, in the No. 6 K-PAX Racing Volvo S60, scored his second podium of the season in Round Five at COTA, finishing second. He trails O’Connell by 40 points.
Figge, in the No. 9 K-PAX Racing Volvo S60, has been another of the tough-luck drivers this season. He has been quick early in races, but has run into trouble while in the lead. After winning the opening race at St. Petersburg, in Round Two, Figge’s tire was punctured by debris from a late-race collision, forcing him to pit from the lead. In Round Three at Long Beach, Figge’s car suffered a mechanical failure while in the lead, that sent the car spinning out of control, hitting the retaining  wall in Turn One. Following two top-10 finishes at COTA that leave him with 407 drivers’ points, Figge should be near the front in Detroit.
Mike Skeen, of Charlotte, N.C., sits between the K-PAX duo, fourth in the drivers’ standings with 417 points. Skeen, in the No. 2 Hawk Performance Chevrolet Corvette, is usually toward the top of the time sheets early in the weekend and will look to convert that speed to success in qualifying and the race. His teammate, Tim Bell, of Los Altos, Calif., will try to follow suit in the No. 12 Hawk Performance Nissan GT-R.
Tomy Drissi, of Los Angeles, is again slated to drive the No. 46 The Heat Porsche 911 GT3 Cup for the second time. Bostonian Tim Pappas, in the silver No. 54 Mercedes-Benz SLS comes to Detroit having scored a top-five finish at COTA in the gullwing machine. Craig Stanton, of Long Beach, Calif., completes the 12-car GT field in the No. 85 Racing For our Heroes Porsche 911 GT3 Cup.
Pirelli World Challenge GTS: Baldwin Holds Down the Point in GTS
 Jack Baldwin, of Marietta, Ga., maintains the GTS Championship lead heading into the Detroit race weekend, with 579 points. Baldwin amassed his point lead by finishing all five races on the podium thus far, including a St. Petersburg sweep in his No. 73 Motul/StopTech/Foametix Porsche Cayman. Baldwin’s teammate and long-time Trans-Am Series car owner Buz McCall, of Boca Raton, Fla., will make his first Belle Isle start in the No. 72 Motul/StopTech/Foametix Porsche Cayman.
Peter Cunningham, of Milwaukee, Wis., sits second in the drivers’ standings, 125 markers behind Baldwin. Driving the No. 42 Acura/HPD/RealTime Acura TSX, Cunningham comes off a weekend at COTA where he was unable to finish on the podium, something he had done in the previous three races. He and his teammate, Nick Esayian, of San Diego, in the No. 34 Acura/HPD/RealTime/Red Line Oil Acura TSX, will look to get back on the right path in Detroit.
Mark Wilkins, of Toronto, scored a third-place finish in Round Five behind the wheel of the No. 38 Kia Motors America Kia Optima, which was the first podium for the marque in 2013. As a result, Wilkins occupies third in the drivers’ championship, with 422 points. His teammate Nic Jonsson, of Sweden, also showed strong pace at COTA, but was unable to finish Round Five in the No. 36 Kia Motors America Kia Optima due to contact. Both drivers are hungry to drive their Kia to victory lane and will  attempt to do just that this weekend.
The No. 20 Best IT Chevrolet Camaro, driven by Lee has also been in the championship hunt as we approach the mid-way point of the season. Lee found his way to the front in each of the five races this year, scoring three podiums, including one win at the most recent round at Circuit of the Americas. Currently, Lee sits fourth in the drivers’ championship with 408 points and swept the Detroit doubleheader in 2012.
Lee’s teammate, Harry Curtin, of Buffalo, N.Y., continues to improve behind the wheel of the No. 29 Best IT Chevrolet Camaro. In only his second year of Pirelli World Challenge competition, Curtin will try to continue his development at the new-layout Belle Isle circuit.
Alec Udell, of The Woodlands, Texas, sits fifth in drivers’ points. Udell has accumulated 372 points after Round Five in the No. 17 Motorsports Development Ford Mustang Boss 302, which is impressive considering the 17-year-old driver was unable to compete at Long Beach due to his age. As a result, he scored double points for his sixth-place finish in Round Four.
Lawson Aschenbach, of Jupiter, Fla., and Tony Gaples, of Libertyville, Ill., have proven to be quick in their Black Dog Speed Shop machines thus far in 2013. Aschenbach, driving the No. 10 Blackdog Speed Shop Chevrolet Camaro, sits sixth in points despite having scored two wins (Long Beach and COTA Race One). Gaples, in the No. 11 Blackdog Speed Shop Chevrolet Camaro, has been consistently strong, scoring four top-10 in five races.
Bill Ziegler, of Pointe Verde Beach, Fla., will be the fourth GMG car in the combined field driving the No. 95 Swisher Racing/GMG Pontiac Solstice.
To add to the mix, four GTS drivers will be making their first start at the circuit just outside downtown Detroit. That list includes Dean Martin, of Westland, Mich., in the No. 50 Rehagen Racing Ford Mustang Boss 302; Roger Rodas, of El Salvador, in the No. 52 Always Evolving Ford Mustang Boss 302S; Jim Taggart, of Raleigh, N.C., driving the No. 61 Lotus USA/Taggart Autosport/LRR Lotus Exige; and Eric Davis, of Burbank, Calif., driving the No. 75 Always Evolving Autotopia Ford Mustang Boss 302.
Four Michigan drivers will also be fighting to finish well in their “home” race. Dane Moxlow, of Groose Ile, Mich., returns to the streets of Belle Isle in the No. 7 Trenton Forging/Eaton Steel/Huntington Bank Ford Mustang Boss 302S. Todd Napieralski (No. 39 Total Performance Racing Chevrolet Camaro), of Chelsea, Mich.; Craig Capaldi, of Richmond, Mich., in the No. 69 Wolverine Bronze Company Ford Mustang Boss 302, and newcomer Martin will battle with Moxlow to bring the hometown fans  to their feet.
Ardee Toppe, of The Woodlands, Texas, in the No. 21 Ford Mustang Boss 302; Roger Miller, of Salt Lake City, Utah, driving the No. 23 Ford Mustang Boss 302S; Ric Bushey, of Virginia Beach, Va., in the No. 51 Nissan/Motul/OSGiken/SPL/Sparco Nissan 370Z; Rich Golinello, of Tampa, Fla., driving the No. 55 Ford Mustang Boss 302S; Tom Long, of Raleigh, N.C., in the No. 60 Lotus USA/Taggart Autosport/LRR Lotus Exige; Robert Stout, of Brownsburg, Ind., in the No. 86 Scion/TRD/Lucas Oil/E3 Park Plug Scion  FR-S; Brad Adams, of New Orleans, driving the Voodoo/DatDog/Yo MTV Raps! Ford Mustang Boss 302S; and Brian Kleeman, of Towson, Md., in the DXD Clutches/DWW Motorsports Nissan 370Z, complete the 27-car Pirelli World Challenge GTS field.
GT: Qualifying Lap: N/A, New Course Configuration
Race Lap: N/A
Closest Margin of Victory: N/A
GTS: Qualifying Lap: N/A
Race Lap: N/A
Closest Margin of Victory:  N/A
GT:2012:Race One – Johnny O’Connell, Cadillac CTS-V.R
Race Two – Johnny O’Connell, Cadillac CTS-V.R
2008:Randy Pobst, Porsche 911 GT3
2001:Peter Cunningham, Acura NSX
GTS:2012:Race One – Andy Lee, Chevrolet Camaro
Race Two – Andy Lee, Chevrolet Camaro
2008:Randy Pobst, Porsche 911 GT3
2001:Peter Cunningham, Acura NSX
Event Entry List
Pirelli World Challenge Championships
No., Class, Driver / Hometown, Sponsors Car
2, GT, Mike Skeen/Charlotte, NC, Hawk Performance Chevrolet Corvette
3, GT, Johnny O’Connell/Flowery Branch, GA, Cadillac Racing Cadillac CTS-V.R
6, GT, Randy Pobst/Gainesville, GA, K-PAX Racing Volvo S60
7, GTS, Dane Moxlow/Grosse Ile, MI, Trenton Forging/Eaton Steel/Huntington Bank Ford Mustang Boss 302S
8, GT, Andy Pilgrim/Boca Raton, FL, Cadillac Racing Cadillac CTS-V.R
9, GT, Alex Figge, Denver, CO, K-PAX Racing Volvo S60
10, GTS, Lawson Aschenbach/Jupiter, FL, Blackdog Speed Shop Chevrolet Camaro
11, GTS, Tony Gaples/Libertyville, IL, Blackdog Speed Shop Chevrolet Camaro
12, GT, Tim Bell/Los Altos, CA, Hawk Performance Nissan GT-R
14, GT, James Sofronas/Villa Park, CA, GMG/Mobil 1 Audi R8 LMS
17, GTS, Alec Udell/The Woodlands, TX, Motorsports Development Mustang Boss 302R
20, GTS, Andy Lee/Colorado Springs, CO, Best IT Chevrolet Camaro
21, GTS, Ardee Toppe/The Woodlands, TX, Ford Mustang Boss
23, GTS, Roger Miller/Salt Lake City, UT, Ford Mustang Boss 302S
24, GT, Duncan Ende/Los Angeles, CA, Services Audi R8 LMS
29, GTS, Harry Curtin/Buffalo, NY, Best IT Chevrolet Camaro
32, GT, Bret Curtis/Westlake Village, CA, United Steel Supply/Spectra Resources Audi R8 LMS
34, GTS, Nick Esayian/San Diego, CA, HPD/Acura/RealTime/Red Line Oil Acura TSX
36, GTS, Nic Jonsson/Sweden, Kia Motors America Kia Optima
38, GTS, Mark Wilkins/Toronto, ON, Kia Motors America Kia Optima
39, GTS, Todd Napieralski/Chelsea, MI, Chevrolet Camaro
42, GTS, Peter Cunningham/Milwaukee, WI, Acura/HPD/RealTime Racing Acura TSX
46, GT, Tomy Drissi/Los Angeles, CA, The Heat Porsche 911 GT3 Cup
50, GTS, Dean Martin/Westland, MI, Ford Mustang Boss 302S
51, GTS, Ric Bushey/Virginia Beach, VA, Nissan/Motul/OSGiken/SPL/Sparco Nissan 370Z
52, GTS, Roger Rodas/El Salvador, Always Evolving Performance Ford Boss 302S
54, GT, Tim Pappas/Boston, MA, Mercedes-Benz AMG SLS GT3
55, GTS, Rich Golinello, Tampa, FL/Ford Mustang Boss 302S
60, GTS, Tom Long/Raleigh, NC, LotusUSA/Taggart Autosport/LRR Lotus Exige
61, GTS, Jim Taggart/Raleigh, NC, LotusUSA/Taggart Autosport/LRR Lotus Exige
69, GTS, Craig Capaldi/Richmond, MI, Wolverine Bronze Co Ford Mustang
72, GTS, Buz McCall/Boca Raton, FL, Motul/StopTech/Foametix Porsche Cayman S
73, GTS, Jack Baldwin/Marietta, GA, Motul/StopTech/Foametix Porsche Cayman S
75, GTS, Erik Davis/Burbank, CA, Always Evolving Autotopia Ford Mustang Boss 302S
85, GT, Craig Stanton/Long Beach, CA, Porsche 911 GT3 Cup
86, GTS, Robert Stout/Brownsburg, IN, Scion/TRD/Lucas Oil/E3 Spark Plug Scion FR-S
95, GTS, Bill Ziegler/Ponte Verde Beach, FL, Swisher Racing/GMG Pontiac Solstice
96, GTS, Brad Adams/New Orleans, LA, Voodoo/DatDog/Yo MTV Raps! Ford Mustang Boss 302S
07, GTS, Brian Kleeman/Towson, MD, DXD Clutches/DWW Motorsports Nissan 370Z

Andy Lee of Colorado Springs, CO, pilots his Best IT Chevrolet Camaro during  a Pirelli World Challenge event – Image: Weber

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

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

Battle of The South China Sea Scenario

Engineers and ground crew inspect China’s J-20 Stealth Fighter during tests; so much for western speculation in 2010 the country’s 5th generation combat aircraft development was “10-15 years” away…. Image: PLA

Prelude to Spyker SAAB Lawsuit – Euphemistic Audacity: eMOTION! 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! Industry Analytics Team

Euphemistic Audacity: eMOTION! 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

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:

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

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

·         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

·         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)


This report was prepared for the Commission by Capital Trade, Incorporated.  It can
be found online at:

Press Contact:

Jonathan Weston



eMOTION! ARCHIVES – Hyperintelligence: Toyota, CIA, NSA, KGB, MOSSAD [MI-6] and… Sun Tzu

Publisher’s note:  As Renault very recently found out much to its shock and dismay, the need for business intelligence and counter-intelligence is as critical to a company’s success and security as that of a nation.  In this vein, the words in 2002 of national security strategist Dr. Sheila Ronis, Director of MBA Programs at Walsh College in Troy, Michigan,  could not have been more prescient:

“The fates of companies, as well as countries are tied to their intelligence capability. Guess what organization in the world, long before the Internet’s arrival, was found to send half a million messages a day from just one country to its home base via satellite? The CIA? The Israelis? The Russians? Toyota? If you guessed Toyota, you would be right.

“As unlikely as it sounds, a CIA study in the late eighties found that Toyota sent over 500,000 messages a day from its Torrance, California facility to Tokyo via an encrypted satellite hookup. We know that our CIA sent about half as many messages around the world per day at that time, and although the Russian’s intelligence was still top notch in the early nineties, its infrastructure didn’t compare to that of Toyota’s. 

“Today, many intelligence experts believe that Toyota’s intelligence capabilities are still superior to those of the CIA, the Israelis or any global power. That’s because Toyota represents an organization filled with learners who share their knowledge.”

Conversely, it would be unwise for Toyota’s competitors to assume that the company, given the current quality problems necessitating recalls of even its Lexus brand, has somehow dropped the ball in terms of its much vaunted “Relentless Pursuit of Perfection”.   Indeed, nothing is further from the truth, and we know from our own intelligence sources that Toyota’s difficulties primarily stem from internal sabotage at the design and manufacturability level put in place nearly two decades ago.  

This activity constituted a core element of a grand strategy by an emergent global player, who understood implicitly that the success of  its long range plans required crafting a loss of consumer confidence in the Toyota brand.

One needs look no further than Renault to understand how dedicated this emergent global player is to the accomplishment of its set objectives.

Myron D. Stokes


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Richard Holbrooke’s World: Memories of a Newsweek Special Correspondent