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URL:  https://boards.fool.com/that-i-suspect-is-how-most-mncs-became-top-dog-27706694.aspx

Subject:  Re: Investment Biker Discussion Date:  5/27/2009  2:40 PM
Author:  TMFMmbop Number:  1726 of 5166

That, I suspect, is how most MNCs became top dog in market after market, worldwide

I think your point is broadly accurate, but I do think it's a bit more cloudy/shady/complex in China specifically. When we were in country last year we were told by a few people to watch where MNCs won contracts in China. They would be pretty high profile, focused on the big cities such as Shanghai and Beijing, and be for monetary sums that were nothing to sneeze at (GE and the "green" Olympics stuff, for example).

But if you looked at who was winning contracts in the west, where the real money is being spent (the stimulus, for example), it's domestic Chinese companies. That's because while China wants to do enough to keep the MNCs happy and their dollars flowing into the country, China wants to support its domestic industries so it can emerge as a global business leader. So they are giving very big money to Han Chinese in somewhat low profile ways.

I thought of that observation when I read this passage from Rogers because it's certainly true that while you seen enormous amounts of Western logos on the coast, they're much rarer in central and western China. But we can talk more about the Chinese character when we get to China Road. And that will be an interesting discussion.

Tim
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