According to GM China, the similarities between its Spark minicar and Chinese Chery Automobile Corp.'s QQ model are more than just mere coincidence. In fact, if you examine the automobiles, they are virtually identical.
*****"Chinese officials were demanding more advanced technology than seemed appropriate or necessary to Chrysler," concluded the Commerce report.
Chrysler was at that time the maker of the U.S. Army M-1 tank.
Chrysler officials quickly realized the advanced assembly and manufacturing technology demanded by the Chinese was far more applicable to making armored vehicles such as the U.S. Army M-1 tank than vans for soccer moms.
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Audi, the German car maker, also had a sweet deal with China to manufacture its very popular 5000 sedan during the 1990s. However, once the terms of the deal expired, Audi was hustled out of China.
Suddenly, the same Beijing car maker began producing the "Red Flag" sedan. The Red Flag was identical to the Audi 5000 right down to the last nut and bolt - with the single exception of a plastic red-flag hood ornament.
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The U.S. companies that so heartily supported open trade with China are now beginning to regret the deals they made with Beijing. Tyrants don't have to play fair or by the rules. GM, Chrysler and others are learning as they pay the financial penalty of a fools bargain.
Perhaps it is time to examine how we "partner" with our competitors.
"Outsourcing" is a two-edged sword when it comes to China. We get cheaper goods because of low-cost labor. They get our designs and technology.
So is "outsourcing" really cheaper or are we just borrowing from our future? It's hard to put an entry on a spreadsheet under the heading of "pirated knowledge".