SAIC Denies GM Merger – China Bashing Begins Nonetheless
Tuesday, December 2, 2008 11:47There’s been some speculation on GM today amid rumors of Shanghai Automotive Industry Corporation (Group) (SAIC). The deal, which was originally reported by the Chinese news site www.nbd.com.cn, was later officially denied by SAIC.
Another Chinese News Source, 21st Century Business Herald, later reported that Chinese state-owned companies such as Shanghai Auto and Dongfeng may have the intention and the capability to acquire assets from the troubled Detroit automakers.
Predictably, the China bashing has already begun. A good example is today’s post on Edmunds titled “Are China Vultures Circling General Motors and Chrysler?.” You can expect to see more examples if a deal gets done. Bet on it.
I find it profoundly hypocritical that the very people who preach about the wonders of free market capitalism are the same who are now crying foul because, this time, they’re on the wrong side of capitalism. I haven’t heard much of free market ideology out of any of the wall street investment banks lately. They’ve been curiously muted on the topic. In a perfect world, I suppose, it would be nice to have free markets on the ride up, and socialism on the way down.
Americans should be thankful that the Chinese are willing to buy up more of our debt and failing US corporations. If the alternative is a US bailout of the automakers funded by taxpayers , I say THANK YOU CHINA. You saved us a few billion dollars.
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