G.E. Hearts China. Yes, the G.E. that is in the White House is literally giving away the farm to China through joint ventures on very advanced technology, this time in advanced avionics instrumentation. G.E. literally says they are all into China.
GE avionics will be on board a new Chinese commercial airliner that is likely to become a rival to aircraft produced by U.S.-based Boeing and Europe’s Airbus.
G.E. isn't alone. Joint Ventures where the manufacturing, jobs and profits occur in China, have grown at an alarming rate. From the USCC hearing on Chinese State-Owned Enterprises and U.S.-China Bilateral Investment, total foreign direct investment inflows (which includes joint ventures) to China was 6.1% of the world's foreign investment in 2009. China receives the largest FDI share of all emerging nations. According to Economist Robert Scott:
Foreign Invested Enterprises (both joint ventures and wholly owned subsidiaries) were responsible for 55% of China’s exports and 68% of its trade surplus in 2010.
graph from USSC Robert Scott Testimony
U.S. firms investing in China such as GM, Motorola, Johnson & Johnson, and the Blackstone Group, and large retailers such as Walmart, Target and CVS benefit directly or indirectly from China’s currency manipulation and subsidies.
In other words, while America is in utter crisis, with no end in sight of record unemployment, G.E. and most other U.S. multinational corporations are busy helping China overtake the United States as the world's #1 economy and making damn sure China gets rich and has plenty of jobs! Gets worse, it seems Obama's jobs plan is all about offshoring more jobs!
Take a look at this screenshot of Chinese engineers attacking the University of Alabama servers. Literally China is training engineers to commit cyber-attacks on the United States and there is now a youtube video to prove it.
A Chinese military propaganda video may have let slip something the West has suspected for a long time: that China is attacking U.S. targets electronically.
Think the reason G.E. gives China access to advanced technology, know-how, secrets are those tax incentives to offshore outsource your job, so touted as the cure all by politicians to the great U.S. jobs crisis? Not so shows Tax Journalist David Cay Johnson:
Washington politicians say high corporate tax rates are driving U.S. companies to invest offshore where tax rates are lower. But that is not General Electric’s experience.
GE’s disclosures show that over the last decade it paid much lower tax rates in America than offshore, just the opposite of the Washington political mantra. Even more puzzling, the U.S. corporate giant chooses to take more of its profits in other lands despite the higher tax rates there.
Given that GE has a roughly 1,000-person tax department dedicated to paying as little as possible in taxes, what the disclosures show is that something other than tax policy is driving GE’s business decisions.
The law gives companies a great deal of latitude in deciding how to arrange where they report profits from multinational transactions. GE won’t elaborate on why it takes so much of its profit in higher tax jurisdictions offshore.
While G.E. tries to claim they're all good with all sorts of legal protections, China is notorious for stealing intellectual property, trademark infringement and copyright violation.
G.E. typifies all that is wrong with the United States. Seems they would sell their own mothers for short term profits. On a macro scale, MNCs, acting in concert, are selling out America. Bottom line, MNCs bottom lines these days sure are none too good for America's.