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On the same day that the Chinese government blocked Coca Cola from purchasing China’s largest juice maker, Huiyuan Juice, the government was also meeting with business leaders behind closed doors scheming for new more innovative ways to block foreign acquisitions of Chinese companies, the Economic Observer reports.
Last September Coca Cola offered to buy the Huiyuan Juice Company for approximately $2.4 billion. The acquisition would have been the largest foreign takeover of a Chinese company in history. However, on March 10, the Ministry of Commerce rejected the takeover bid, citing anti-trust laws.
The Ministry of Commerce said that it feared Coca Cola would "set up some exclusive terms to restrict competition in the juice market." Those accusations were completely unfounded, though, as the acquisition would have given Coke just a 20 percent market share of the juice business in China.
The same day that the government was blocking the Coke bid, the Bureau of Industry and Injury Investigation held a closed-door meeting with private sector leaders to discuss new ways in which it can protect domestic industries from foreign takeover.
The Economic Observer is reporting that the government is hoping to have new regulations within three years. The government is already researching a proposed Industry Security Law.
The new regulations would be broader and more comprehensive than the Anti-Monopoly Law used to block the Coke deal. The new law would take into account things such as other links in the industrial chain, social welfare and the effect the acquisitions would have on other key sectors of China’s economy.
While the Chinese government is busy protecting its key industries from hostile takeovers, American policymakers are sitting on their hands and railing against “protectionism.” From July 1978 to July 2008, America sold 16,613 of its best companies to foreign investors, allowing the profits and technological secrets in such industries to benefit foreign owners. Moreover many of the key jobs (in research and development, for instance) go to foreign workers, while the profits that accrue to foreign holding companies boost the tax revenues of foreign governments.
Originally posted by marg6043
reply to post by DangerDeath
Well they are learning from the pros and their failure and I remember that the US used to be on top of the world once.
Still is interesting that while we get screw by the WTO for everything we do to protect our nation China and new emerging industrial power houses are using protectionism to avoid the great US mistakes.
Thank you for contacting me with regard to the domestic automotive industry. I appreciate hearing from you.
As you know the current economic crisis has led to the meltdown of and subsequent government assistance to the financial industry. The crisis has also caused upheaval in almost every sector of the economy, including the U.S. automotive industry as automakers, suppliers, dealers, and consumers have all seen their access to credit become significantly limited. The Big Three, GM, Ford, and Chrysler, have testified twice before House and Senate Committees regarding the assistance they need from the government in order to avoid bankruptcy. GM and Chrysler have stated they need immediate assistance in the form of a bridge loan while Ford asked for a multi-billion dollar line of credit but stated it would likely not need access to it unless economic conditions worsened. All three companies submitted to Congress restructuring plans that would allow the companies to pay back the loans.
As you may know, President Obama's Auto Task Force announced that it would withhold additional federal assistance to the automotive industry unless the companies make additional changes. According to the announcement, Chrysler has 30 days to finalize a merger with the Italian carmaker Fiat. GM was given 60 days to streamline operations and reduce costs.
The President has expressed his confidence in and his commitment to a successful restructuring of and long-term viability plan for General Motors and Chrysler. The road ahead is going to be very difficult and painful, although as the President said, there is potential for both companies to emerge from restructuring as stronger, more competitive companies. I share the President's confidence in GM and Chrysler and will go even further and state that I steadfastly believe that both companies are on the verge of emerging from this dark period as industry leaders once again in sales, fuel economy, safety and customer satisfaction. The message from the President is clear - there is a lot of work to be done yet; I stand ready to roll up my sleeves and get to work.
Over the next 60 days, everyone at GM - from union workers and retirees, corporate executives, and bondholders - will face many challenges and high-hurdles. However, the progress that GM, especially in its contract talks with the UAW, whose members have already made tremendous sacrifices, shows the company is capable of reaching the demanding goals set forth for them by the Obama Administration. Additionally, I am optimistic that Chrysler and Fiat can and will reach an agreement that will put the company on-track for viability with a new product line that gives Chrysler the aggressive boost it needs.
There is a lot or work to be done, but I believe important steps have already been made. You may res assured I will keep your comments in mind as this matter moves forward.
Again, thank you for being in touch. For news on current federal legislative issues, please visit my website at www.house.gov/dingell; you can also sign up there to receive my e-newsletter. In the meantime, please do not hesitate to contact me again if I may be of assistance with this or any other matter of concern.
With every good wish,
John D. Dingell
Member of Congress
WASHINGTON (Reuters) - U.S. securities regulators are crafting two types of 'circuit breakers' to restrict short selling, a type of investing often blamed by executives for declines in the stocks of their companies, a source familiar with the proposals told Reuters on Monday.
The Securities and Exchange Commission will consider at its Wednesday meeting the restoration of the "uptick rule," which allowed short sales -- a bet that a stock's price will fall -- only when the last sale price was higher than the previous price.
The SEC is working on an updated version of the uptick rule to include all stocks and a bid test, which would only allow shorting at a price above the highest available bid, said the source, who requested anonymity because the proposals are still being crafted.
The source said the SEC is working on a circuit breaker proposal that could temporarily prohibit short sales of a stock if the stock has already fallen by a certain percentage. The source also said the SEC is crafting another circuit breaker that would trigger the application of the uptick rule or bid test after the price of a stock had fallen by a certain percentage.
Late update: Harvard spokesman John Longbrake called to emphasize that the university had conducted thorough investigations of all allegations about Harvard Management Company and point out the 13.8% annualized returns HMC delivered in the ten years that ended June 2008. In a separate development, we learned that Mack was scheduled to be the subject of a February 23 Newsweek story by Michael Hirsh that had been subsequently shelved. Hirsh declined to comment.
A former quantitative analyst at Harvard Management Company, the university's once-vaunted endowment manager, tells the Harvard Crimson she was fired for voicing concern to then-university president Larry Summers' chief of staff about the money manager's risky use of derivatives the traders didn't understand.
The episode dates back to 2002, when analyst Iris Mack, whose website identifies her as the second African American woman to earn a Harvard PhD. in applied math (and someone who likes primary colors) joined the much-venerated Harvard Management Company, which invests the university's then $18 billion endowment, to find what she termed a "frightening" state of affairs.
"The group I was working for had no background whatsoever to be working on [derivatives]," Mack says, adding that, to her knowledge, several of her colleagues were not licensed securities traders. "Sometimes the ways they handled even basic Black-Scholes models [widely used to price stock options] were puzzling."
So Mack took inventory of the abuses -- high employee turnover, lax risk management practices and a "low level of productivity in the workplace" were among others, and detailed them in an email to Marne Levine, Summers' chief of staff and a Treasury staffer on the Obama Transition Team. (Summers was the only person to whom Meyers reported, and according to a recent Forbes story he personally ordered the university's biggest derivatives trade, a purchase of interest rate swaps that cost the university billions this year.)
A month after sending her email, Mack was fired after a meeting in which the endowment fund's then-chief furnished her the emails and castigated her for making "baseless accusations." She later sued for wrongful termination and settled out-of-court with the university. But she claims the practices "shocked" her, and -- the punchline is -- she had joined the company from Enron.
Apache Junction School District -49
APC Update -30
Eastman Chemical -200
Alston Bird Law Firm -86
Mason Schools -22
UST Inc. -60
Ingram Micro Canada -50
Dallas Morning News -500
Contra Costa County -120
Ecco Shoe Co. -1,150
Fujicolor Closing Plant -145
Galbreath Closing Plant -28
Shire Pharma Closing Plant -260
Breyers Ice Cream Plant Closing -201
City of St. Louis -73
TOTAL 2,974 est.
Under 3,000 reported on a Monday.
Thousands of F-22 Jobs At Risk
Pentagon to end F-22 jets, presidential chopper
By The Associated Press
Defense Secretary Robert Gates WASHINGTON -
Defense Secretary Robert Gates says the Pentagon will end the F-22 fighter jet, which is assembled in Marietta, and presidential helicopter programs run by Lockheed Martin Corp. As a result, roughly 2,000 workers at the Lockheed Martin plant in Marietta could lose their jobs. Military analysts widely expected the radar-evading supersonic jet considered an outdated weapon system designed for the Cold War would not go beyond the 187 already planned. The planes cost $140 million each. But Bethesda, Md.-based Lockheed, the nation's largest defense contractor, has said almost 95,000 jobs could be at stake if the Pentagon didn't buy more of the planes. The new fleet of presidential helicopters with a price tag of $11.2 billion that was nearly double the original budget also were considered at risk to be cut in the 2010 budget. (Copyright 2009 by The Associated Press. All Rights Reserved.)