Wednesday, January 19, 2011

G.E. to Share Jet Technology With China in New Joint Venture

jan 18th, 2011

a very bad idea by GE. soon there'll be knock-off GE engines in the market.

---------- Forwarded message ----------
From: Ram Narayanan


Dear Rajeev:

A quote from Lenin:

"The Capitalists will sell us the rope with which we will hang them."

The Chinese communists need not hang the capitalists because by 2020 all leading capitalists of America will most probably be working to serve China's interests!! 

Cheers,

Ram Narayanan


http://www.nytimes.com/2011/01/18/business/global/18plane.html?nl=todaysheadlines&adxnnl=1&emc=tha26&adxnnlx=1295344800-iLwgp4Vz5l0fbgDUcxoLdA  

THE NEW YORK TIMES 

G.E. to Share Jet Technology With China in New Joint Venture
 
By DAVID BARBOZA, CHRISTOPHER DREW and STEVE LOHR 

This article was reported by David Barboza, Christopher Drew and Steve Lohr and written by Mr. Lohr.

Published: January 17, 2011 

As China strives for leadership in the world's most advanced industries, it sees commercial jetliners — planes that may someday challenge the best from Boeing and Airbus — as a top prize.

And no Western company has been more aggressive in helping China pursue that dream than one of the aviation industry's biggest suppliers of jet engines and airplane technology, General Electric.

On Friday, during the visit of the Chinese president, Hu Jintao, to the United States, G.E. plans to sign a joint-venture agreement in commercial aviation that shows the tricky risk-and-reward calculations American corporations must increasingly make in their pursuit of lucrative markets in China.

G.E., in the partnership with a state-owned Chinese company, will be sharing its most sophisticated airplane electronics, including some of the same technology used in Boeing's new state-of-the-art 787 Dreamliner. 

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3 comments:

Pagan said...

Steven Pearlstein in WaPo:
To start things off, the administration might announce its intention to block the joint venture Hu intends to announce later this week with General Electric. GE is hoping to get the contract to provide avionics to the state-owned Commercial Aircraft Corp. of China, which intends to go into direct competition with Boeing. What better way than by forming a 50-50 joint venture with Aviation Industry Corp. of China, another state-owned firm?

In addition to $200 million, GE will be contributing technology to the partnership that will operate as the avionics brain for Boeing's new 787 Dreamliner. And going forward, the partners will jointly develop new radars, controls and guidance system at a jointly run research and development laboratory that is already under construction. Call me cynical, but this sure sounds as if one of America's leading technology companies has decided to sell some of this country's crown jewels to ensure access to China's rigged market, potentially jeopardizing the competitive advantage enjoyed by this country's leading export industry.


How GE Is Arming China to Compete With Boeing -- and America By PETER COHAN

Sameer said...

offtopic: nice article
http://blogs.hbr.org/video/2011/01/a-newmodelfor-emerging-markets.html

oscd said...

I think this is a logical step for GE. People opposing this are thinking much to defensive. The future is for those who shape the future, not those who want to hold old to the past.

It is only logical that a country like China does not want to totally depend on the west for aviation. They are a smart people and they will get there with or without the help of GE. This only gives GE the opportunity for a bigger slice.

prosperity is not a zero sum game. The more we cooperate with each other, the more we all profit. The more we see others as enemies, the more it will become a zero sum game and the greater the risks. The world is becoming one big market place, but it is governments that can restrict the level of competition from outside.

It is corporations like GE that want to operate globally to make even more money. That may not be in the interest of countries. We should not let countries be led by big corporations. China is right to force big corporation to suit her needs rather than some hollow ideological ideal that only serves greed. And so should other countries do. International trade is good, but should not be at the expense of the local economy.