Friday 10 June 2016

New China Syndrome: An Interesting Business Model

I have recently encountered an interesting phenomenon which, having been alerted to it, probably means it is quite widespread & maybe even structural.

Chinese firm A is trying to justify making an overseas asset acquisition.  (They are clearly acting under instructions as part of the Great Haul of China project to buy up the entire universe.)  Said asset would, naturally enough, be a lot more attractive if it had a full order book for its output several years forward.

Enter Chinese company B, with a big multi-year order.  What a happy coincidence, eh?  These are the things that make the world go around.  One could imagine such arrangements being replicated all over the place.  

The flaws in this entertainingly circular business model are rather obvious ...   When the man with money meets the man with experience, the man with money gets some experience.  As they say.  

Personally, I have a nice bridge over the Thames for sale.  Its value would be incomparably improved if it had a long-term tolling contract with a big international trucking company willing to commit to using it for all its cross-Thames business for the next ten years.  Nice weekend, all !



BE said...

Surely you contrive to run the target business down, then buy it, then hey presto it has been turned around!

Or is it more like a buyer of second-hand cars: where the higher the price the better the car must be?

Giorgios said...

I took it as a ruse to move money out the Country.

James Higham said...

If China is doing this, what do the Jewish entrepreneurs think of this?

andrew said...

Didnt the japanese buy up everythng that moved in the us in the 80s
... and then deeply regretted it?

dearieme said...

"Sir" Philip Green.

Electro-Kevin said...

I'm not sure if this is pertinent to the debate. I do not understand this post.

Africa was not denuded of her mineral wealth - new methods of extraction mean that the continent is as bounteous as ever.

So why is Africa allowing herself to be colonised again ? Where are the African industrialists ?

Why are we, the Europeans, forever blamed for her failings and instead of railing against the Rhodes statue wouldn't radical students be better for dealing with exploitation of this day rather than the past ?

Electro-Kevin said...

As I said previously. The person whose motivating Mr Cameron and really running the country.

Electro-Kevin said...
This comment has been removed by the author.
Electro-Kevin said...

Who's (can't be bothered re-editing again. Am v.v. drunk)

andrew said...

au contraire ek

I think project fear is failing because in a civilised society (and I think this largely is), the cost of dissent is not that high - even to those at the bottom of the pile.

So why not kick off? (in a civilised manner)

He said toddling off to his wine cellar (*)

(*) if a wine cellar can be rather small and above ground and resemble a cupboard

And in a larger sense, though marginally pro remaining, am v.v. happy to see that the electorate has started to see through the politics of fear - used by both sides, but more by the remainers.

If only they could learn to add up.

Electro-Kevin said...

Pretty damning for Boris and his fans.

The working class are 'kicking off' :

A) By emigrating and taking their skills with them

B) Through the ballot box - peacefully.

We don't do things the French farmer way - not any more (since Thatcher)

No credit is ever given for this, nor the tolerance towards mass immigration and the understanding that it's policy at fault and not the migrants themselves.

(I totally believe that our fans are not at fault in Marseilles btw - I saw one rescuing his nearly full pint from the midst of a melee)

Anonymous said...

This fight over Brexit is just the continuation of a centuries old fight against the Roman Empire's attempt to enslave free men.

The FBI part of the US's assault on free men, was created by Napoleon Bonaparte's great-nephew Charles Joseph Bonaparte

The truth is out there.