Xugong, a leading Chinese construction machinery manufacturer, sold its 50 percent stake to Carlyle Group, a private equity firm from the United States. The deal was approved by the Xuzhou city government this month.
The Carlyle deal has sparked off a hot debate in China's websites. Many Chinese have expressed their concern about the potential impact of the national economic safety as more and more Chinese leading firms have been acquired by foreign investors in recent years.
Some critics said that China's local government was truly shameful to sell China's leading firms, such as Xugong, to foreign companies.
China is an emerging market, no one can dispute that. This is the reason that U.S. Treasury Sec. Hank Paulson is headed to China with a trade delegation team to spark trade and currency talks with the Chinese Government.
At this point is taking baby steps to prevent itself from growing at a more rapid pace than they are ready for. Paulson is bringing some muscle with him to China, from his cabinet members to key players from major U.S. corporations.
The goal is to spark business between the U.S. and China, but focusing on the major U.S. Corporations and not the small to middle market U.S. companies.
NAMC Worldwide has just opened up offices in Beijing China to bridge the gap between small to middle market companies in the United States and China.
This bridge is necessary for such companies because the spotlight is on U.S. major corporations, which means that they will reap the rewards from increased business in China, the smaller companies firstly do not have the inroads in China to build strong ties and its a difficult thing to develop.
So will business grow between the U.S. and China? this is no doubt but NAMC is making sure that smaller players are not left out of the equation.
Trade Delegations as well as business conferences that focus on small and middle market U.S. companies building strong relationships in China.
We believe that this will be instrumental in additional business between China and the U.S. being done and trade relations growing.
I welcome feedback from U.S. companies on this topic, either here or you can visit www.namcworldwide.com for additional information.
Steve Burke
NAMC Worldwide
Posted by: Anonymous | December 8, 2006 10:54 AM | Permalink to Comment