Chinese government: clamp down on foreign companies that get in the way!
– South Korea’s SK Telecom, Kumho Tire –
– US Motorola, Caterpillar, French Danone –
We will deliver a summary of the article published in Chosun Online.
Chinese government tactics:
The Chinese government tightens regulations
on foreign companies that hinder the growth of domestic companies.
It will benefit Chinese companies and keep foreign companies in check.
However, if a foreign company gets in the way, they will be kicked out of China.
Korea SK Telecom example:
In 2006,
it invested $1 billion in a strategic alliance with China Unicom,
China’s second largest telecommunications company.
However, due to Chinese government regulations,
the company had to sell its shares in 2009.
Transferred SK Telecom technology：
At that time,
China actively accepted investment to receive technology transfer from SK Telecom.
However,
China was effectively forced to sell his stake in SK Telecom under the guise of national security.
Korea Kumho Tires:
Kumho Tire’s joint venture in China had the top share in the Chinese market.
However, in March 2011,
it was plagued by slanderous propaganda on state-run Central Television,
and in 2018 it was handed over to a Chinese company.
Korea CJ O Shopping:
In 2004, it established a Chinese joint venture
called Dongfang CJ with Shanghai Media Group (SMG).
China asks for stake sale:
Dongfang CJ turned profitable in 2006.
Achieved sales of 1 trillion won in 2012.
However, the Chinese side demanded South Korea CJ to sell its shares.
Korea CJ withdrew from the Chinese market after reducing its stake from 49% to 15%.
US Motorola example:
In 2010,
Motorola sued Huawei for having its wireless network technology stolen.
However, under pressure from the Chinese government,
the lawsuit was dropped.
The Chinese government has dealt more severely with companies
with high Chinese market share and high sales.
The case of Danone of France:
In 1996, Danone established a joint venture
with Chinese mineral water company Wahaha.
The joint venture holds 23% of the Chinese beverage market, beating out Coca-Cola.
using the Wahaha brand：
Wahaha began using the Wahaha brand in other companies as well.
The Chinese government supported Wahaha’s claims.
Danone lost the lawsuit and liquidated the Chinese joint venture.
Bitter experience in entering China:
Until now,
global companies have shown pro-China moves in expanding into China.
However, after experiencing a bitter experience in China,
he has now launched an anti-China movement.
USA Caterpillar:
He even lobbied the US political world for China and succeeded in advancing into China.
However,
Caterpillar struggled due to “the government’s financial support to Chinese manufacturers from 2009.”
US companies betrayed by China:
Many US companies, including Caterpillar,
are lobbying Congress for legislation against China.
https://www.chosunonline.com/site/data/html_dir/2023/07/14/2023071480167.html
Korea’s secondary battery and automobile industry：China plots to steal technology!
-Expanding into the fields of shipbuilding, automobiles and displays-
– 93 cases of Korean industrial technology being leaked overseas –
We will deliver a summary from the articles published in Chosun Online.
Capturing Korean technology:
China’s takeover of Korean technology
is not limited to the semiconductor field.
They have extended our reach to various fields
such as shipbuilding, automobiles, and displays.
South Korean Intelligence Agency:
National Intelligence Service
Incident of industrial technology leaking overseas:
In the last five years, 93 cases have been caught in South Korea.
Of these, 24, or a quarter, are semiconductors.
The remaining 69 projects were in displays,
secondary batteries,
automobiles,
telecommunications,
and shipbuilding.
https://www.chosunonline.com/site/data/html_dir/2023/07/15/2023071580034.html