China increasingly difficult for Foreign Companies to Operate in

China is becoming an increasingly difficult place for foreign companies to operate in.GE CEO Jeffrey Immelt voiced his growing frustration with Chinese policies with Google also facing new restrictions.While the US is trying to access the growing Chinese market for their products,China is only interested in technology.Implicit and explicit barriers to foreign company operations have made domestic companies dominant in China.One example is how the Chinese manufactures increased their wind energy marketshare from non existence in 2005 to dominance in 2010.The protectionist pattern take the form of the Chinese government forcing the foreign manufacturer’s to first partner with local companies.This leads to a transfer of technology and processes to local partners.When these domestic companies attain a semblance of competence,they start on their own flooding the markets with extremely low priced products which makes it impossible for foreign companies to compete.These  companies then move in to foreign markets edging out the competition through cheap low priced products.The Chinese government supports the whole process through huge capital and export subsidies.China has already attained commanding lead in Clean Energy through the use of this policy.Note while this is a smart strategy to improve a country’s domestic industrial base,China’s huge size has made this a sticking point for MNCs.Expect increasing protests and boycotting (like Google) by MNCs over these anti-foreign practices

Google says China partially blocks search service – Yahoo

A Google search feature was blocked in China on Thursday, the company said as it awaited Beijing’s decision on whether to renew its operating license amid tensions over censorship.Google Inc. said mainland users were unable to use the search giant’s “suggest” feature, which offers possible results as they start to type a query.

“It appears that search queries produced by Google Suggest are being blocked for mainland users in China,” Google spokeswoman Jessica Powell said in an e-mail. “Normal searches that do not use query suggestions are unaffected.”

Although Google services such as YouTube do get blocked from time to time, the new constraints are the latest example of the Chinese government using its power to make Google’s search engine a less convenient option on the mainland.

China’s Justice System remains a Pawn in the Hands of the Government

Unlike the Legal System in Democratic countries,China’s Justice System is quite medieval in its operations.It remains a pawn in the hands of the government and used as an instrument of government policy.While even developed countries see frequent interference by the executive,the independence of the Legal System is highly cherished.However China due to its Communist Character lacks any legal system independence.Foreign executives are increasing coming under fire from China’s rough and ready Justice System.Earlier Rio Tinto’s Steven Chu was jailed for  10 years on charges of stealing state secrets ( Chinese speak on stealing data on Steel Industry).This has been quickly followed by the 8 year sentence over a Chinese origin US national for stealing Oil Industry Data.This American geologist Mr Xu was detained for over 2 years and was tortured by Chinese security personnel.China’s legal system vaguely classifies data on the state run companies as state secrets.Considering that most Chinese companies are state run,any person having data on Chinese industry can be jailed as a Spy.

China Sentences American Geologist – WSJ

An American geologist detained and tortured by China’s state security agents over an oil industry database was jailed for eight years Monday in a troubling example of China’s rough justice system and the way the U.S. government handles cases against its citizens.Beijing’s No. 1 Intermediate People’s Court sentenced Xue Feng for seeking and providing intelligence related to the purchase of the commercial database on the oil industry.Mr. Xue’s lawyer Tong Wei described the sentence as “very heavy.”

Jon Huntsman, U.S. ambassador to China, was inside the court when the verdict was delivered.For mr. Xue, the verdict comes more than six months since the last court hearing and two and a half years after he was detained—a protracted prosecution and pretrial detention that Chinese officials never explained.

China sentences Rio Tinto staffers to prison – MSNBC

A Chinese court slapped four employees of mining giant Rio Tinto with jail terms of seven to 14 years on bribery and commercial secrets charges, unexpectedly harsh sentences that include a decade of imprisonment for Australian Stern Hu.The punishment for Hu was “very harsh,” Australia’s foreign minister said after the verdict was read out Monday by the lead judge at the Shanghai People’s Intermediate Court. It was unclear whether Hu or his coworkers would appeal.The case has raised foreign investor concern over China’s legal system, particularly the paucity of official information surrounding the secrets charges.