I guess it is as good a place as any to start:
"Republicans assail battery maker’s deal with China" by Todd Wallack Globe Staff / August 10, 2012
A Chinese company’s preliminary agreement to invest in A123 Systems Inc. has ignited concerns that China could take control of the struggling Waltham battery maker’s advanced technology and spurred new criticisms by Republicans that the Obama administration squandered billions in stimulus money with investments in risky firms.
Related: Solar Stimuloot Went to Goldman Sachs
Yes, I would say that is squandering tax money away.
A123, which has warned investors that it is running out of cash, won a $249.1 million federal matching grant in 2009 to expand its facilities as part of the administration’s efforts to revive the economy and boost the nation’s clean energy sector. Under a tentative deal announced Wednesday, Chinese conglomerate Wanxiang Group agreed to invest up to $450 million in A123 and could eventually gain control of 80 percent of the company’s stock.
Republicans quickly raised concerns about the potential loss to China of sensitive technology developed with the support of US taxpayers, with one congressman saying the A123 deal could involve “serious national security issues.”
Get used to it, Americans. It will be happening a lot.
They also compared A123 to the California solar panel maker Solyndra, which went bankrupt after receiving a $535 million federally-guaranteed loan.
See: Obama's Ro$e-Colored $ungla$$e$
“This is just another example of Barack Obama’s failure to follow through on his economic promises and the millions of taxpayer dollars he has wasted,” said Kirsten Kukowski, a spokeswoman for the Republican National Committee. “It’s unfortunate Obama borrowed from the Chinese to give taxpayer money to prop up green energy companies that the Chinese are now buying already.”
Yeah, too bad our government wasted all the tax loot on Wall Street bailouts and wars for empire.
White House officials responded that the Obama administration’s investment in the battery industry has helped the country produce more efficient cars at home, reducing its reliance on foreign oil and creating jobs. A123, for instance, says it now has 1,300 jobs nationwide, more than triple the number it had in 2008. It employs 380 in Massachusetts.
But they are bankrupt.
A123’s agreement with Wanxiang comes as many US clean energy companies struggle to compete against Chinese rivals, which are bolstered by cheap labor and their government’s massive subsidies.
Yeah, too bad our government wasted all the tax loot on Wall Street bailouts and wars for empire.
US companies also complain that the Chinese government has done little to stop firms there from stealing their technology.
Related:
"A division of United Technologies Corp. pleaded guilty Thursday to crimes related to the illegal export of software that US officials say was used by China to develop its first modern military attack helicopter. The subsidiary, Pratt & Whitney Canada Corp.; Hartford-based UTC; and another subsidiary along with UTC agreed to pay more than $75 million in fines in connection with the export violations and for providing misleading information to the US government"
Looks they had help $tealing things, and I can't imagine why.
A Devens-based company, American Superconductor, which makes critical parts used in wind turbines and does business as AMSC, is embroiled in a high-profile court fight with a Chinese company it claims stole its technology.
Clayton Dube, executive director of the University of Southern California’s US-China Institute, said the A123 deal is particularly sensitive because it involves alternative energy, one of the technologies that the United States is counting on for growth.
“There is concern that we are essentially compromising our ability to compete,” he said “On deals involving telecommunications or green technologies, flags will always go up somewhere automatically.”
A123, founded in 2001, is considered one the nation’s leading advance battery makers. In addition to federal aid, it has received significant support from Massachusetts and Michigan, where it built a factory. The state of Michigan provided the company with $12 million in grants, a $4 million loan, and promises of up to $100 million in tax credits.
See: Game Report: Mass. Loses to Michigan
And now they may have to shut down its Michigan plant?
The Massachusetts Clean Energy Center provided the company with a $5 million forgivable loan in 2010.
Just wondering where is my $5 million dollar handout. This as schools are closed and teachers laid off.
Michigan officials could not be reached for comment. A spokeswoman for the Massachusetts center, Krista Selmi, said the state is “closely monitoring the situation and in frequent communication with A123 to ensure that the Commonwealth’s investment is protected.”
Pfft!
A123 executives insisted Thursday that Wanxiang was committed to helping grow the company’s existing operations in the United States, rather than just shipping its technology to China. They also said the deal would provide much-needed cash to maintain its operations here and help it tap into China and other foreign markets.
“This proposed strategic investment from Wanxiang would significantly improve A123’s financial situation,” said A123 Systems marketing manager Dan Borgasano.
Translation: the Chinese bailed out their bacon!
Pin Ni, president of Wanxiang’s US subsidiary, said the company would do whatever is best for A123, but declined to comment further.
Any deal with Wanxiang could also face scrutiny from the Committee on Foreign Investment in the United States, an interagency panel in the executive branch that reviews foreign transactions to make sure they don’t pose national security risks.
Chinese telecommunications equipment maker Huawei Technologies was forced to abandon bids to buy stakes in at least two US companies, including Marlborough-based 3Com, over the last few years because of security concerns. 3Com, a telecommunications equipment maker, was later bought by Silicon Valley technology giant Hewlett-Packard.
The A123 transaction could put the Obama administration in a bind. If it denies the transaction, it is possible A123 Systems may not be able to find an alternate source of capital and go out of business. One analyst, Theodore O’Neill, predicted the company could run out of cash by October if it doesn’t raise more money or slash its expenses.
But if it approves the deal, critics say the White House risks allowing a Chinese company to gain control of potentially important energy technology underwritten by US taxpayers.
US Representative Cliff Stearns, a Republican from Florida who serves on the House Energy and Commerce Committee, said the A123 deal shows the Obama administration is not doing enough to protect US technology. Earlier this year, he said, a Russian citizen gained control of the assets of Ener1 of New York, another troubled battery maker supported by the US taxpayers.
Yup, Russia and China the bad guys. Wouldn't have anything to do with them defending Iran against USrael, would it?
“Once again it appears the Department of Energy and the Obama administration have failed to secure sensitive taxpayer-funded intellectual property from being transferred to a foreign adversary, which raises serious national security issues,” Stearns said. “We need to make sure the federal government isn’t an unwitting accomplice to the theft of our own national secrets by providing them with multimillion-dollar government grants and loans.”
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Related: Chinese company may invest up to $450m in A123 System
Chinese $un Shines on Massachusetts Clean Energy Companies
The Vieau From A123
Mine would look pretty good if someone plunked down $450 million on me.
Not all is bright in China though:
"Chinese solar panel makers are under pressure, too" August 22, 2012
GUANGZHOU — China’s solar panel manufacturers, who dominate global sales with a two-thirds market share, are confronting growing trade and financial problems, a Chinese industry official acknowledged Tuesday, shortly before one of the largest companies, Trina Solar, announced weak results for the second quarter.
Chinese manufacturers ‘‘face challenges of decreasing margins, decreasing exports, lack of capital, protectionism, and an external environment that continues to deteriorate,’’ said Chen Huiqing, deputy director at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.
The US Commerce Department has imposed preliminary antidumping and antisubsidy tariffs on Chinese solar panels totaling over 33 percent, though they are subject to further review. A coalition of manufacturers in Europe has asked the European Union to impose antidumping tariffs, as well.
Chen, the lead speaker Tuesday at the Guangzhou International Solar Photovoltaic Exhibition, said representatives from the Chinese industry are in Brussels to persuade European officials not to start a trade investigation into Chinese solar panels.
Trina, one of the largest Chinese solar manufacturers, said it lost $92.1 million on sales of $346.1 million in the second quarter. Ferocious price wars eroded the industry’s overall revenue, even as volume of solar module shipments continued to increase.
But the value of Chinese solar panel exports dropped 30 percent in the first six months of this year, compared to the period last year, as prices fell.
Bankruptcies of solar manufacturers in the United States and Germany have created political pressure for action against China, where the government has made it a national priority to expand renewable-energy manufacturing capacity.
Oh, do I EVER WISH MY GOVERNMENT had made NATIONAL INDUSTRIAL POLICY a PRIORITY! Instead WARS and BANK BAILOUTS topped their list!
As solar panel factories continue to open in China, the industry’s surplus capacity increases, along with downward pressure on prices, said Yotam Ariel, managing director of Bennu Solar, a research firm in Shanghai.
And they CONTINUE to CLOSE in AmeriKa.
“Everyone talks about the struggle of the US producers, but it seems like the Chinese producers are in a struggle of their own,’’ he said.
The Chinese Commerce Ministry has complained repeatedly that renewable energy programs by five state governments in the United States discriminate against imports from China, but has not said whether it might file a challenge at the World Trade Organization. The ministry is also investigating a complaint from the Chinese industry that the United States is exporting polysilicon, the main ingredient for solar panels, at prices below manufacturing costs.
US companies contend their polysilicon prices are low because they rely on inexpensive hydroelectric power in Oregon, and energy is the biggest single cost in polysilicon production. Chinese polysilicon producers, the main beneficiaries if China restricts imports from the United States, rely heavily on coal-fired power and have a history of toxic chemical spills.
Solar panels are sometimes compared to batteries because it takes so much electricity to make the polysilicon that it can take up to two years for the panel to generate enough electricity to offset the power that went into its manufacture.
Meaning that solar panel production is increasing global warming the same as ethanol production.
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So where else can China get energy, 'eh?
"19 killed in coal mine blast in southwest China" AP, August 31, 2012
BEIJING — It was the deadliest accident since 35 were killed in a blast at a mine in Yunnan province in November 2011.
Coal mine accidents are common in China, where work safety rules are often ignored. Last year, 1,973 miners were killed in coal mine accidents in the country, but that was down 19 percent from the previous year as authorities continue to beef up safety measures.
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I guess that's why they are investing in African as well as Canadian oil:
"CNOOC to buy Nexen at $15.1b" July 24, 2012
SHANGHAI — China moved Monday toward its biggest overseas energy acquisition as offshore oil and gas giant CNOOC Ltd. announced an agreement to buy Canadian producer Nexen Inc. for $15.1 billion.
The deal faces scrutiny from the Canadian government, which has rejected foreign interest in the past over worries about the country’s natural resources industry.
CNOOC and other big state-owned Chinese energy companies have increased purchases of oil and gas assets in the Americas as part of a global strategy to gain access to resources needed to fuel China’s economy....
More times than not, the companies are paying above the industry average to get those deals done....
Calgary, Alberta-based Nexen operates in western Canada, the Gulf of Mexico, North Sea, Africa, and the Middle East, with its biggest reserves in Canadian oil sands....
That's who the Keystone pipeline is for, dumb-f*** Americans. It ain't for you!
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Related: Nine-month-old China bridge collapses
China Steps Up Road Inspections After Criticisms Over Accidents
How about that other infrastructure?
"China jails 20 tied to Web activism" Associated Press, August 03, 2012
BEIJING — China has sentenced 20 people to up to 15 years in jail for advocating violence and separatism in the far western region of Xinjiang, where the central government has clamped down on dissent and restricted religious practices.
The state-run Xinjiang Daily said Thursday that courts in Aksu, Kashgar, and Urumqi heard five cases involving the 20 and found they had used the Internet and removable storage devices to organize, lead, and participate in terrorist groups.
The courts said four of the people made illegal explosives, Xinjiang Daily reported. The report did not cite any bombings or other violence blamed on the defendants.
Xinjiang is home to a large population of minority Uighurs, but is ruled by China’s ethnic majority Hans. Repeated violence has occurred in recent years, including ethnic riots in Urumqi in 2009 that left nearly 200 people dead.
Dilxat Raxit, spokesman for the exiled World Uyghur Congress, said in a statement that the accused had been using the Internet to obtain government-controlled information and to express different political views.
He said the terrorist charges and verdicts were politically motivated.
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"The crackdown comes amid growing concerns about the prevalence of counterfeit drugs and tainted food supplies in China and about increasingly sophisticated counterfeiting operations. "
Also see:
Chinese police said to kill a Tibetan man amid outbreak of violence
Chinese rights activist sued for bias
Chinese activist battles tax charges
US wins dispute with China over e-payment processing
Back to the economy:
"Slower growth stresses China" by Joe McDonald | Associated Press, July 13, 2012
BEIJING — Economies around the world were looking to China to drive demand for exports and support global growth. But in China, ‘‘domestic demand remains weak,’’ said JP Morgan economist Francis Fu in a report. ‘‘Corporate profits have continued to decline, and incentive for business investment is low.’’
On the one hand they talk of making war on China, then on the other they say bail out or economies. What western a**holes!
Other industries, including cargo handling and the manufacturers of shoes, clothing, optical fiber, and wind turbines, are suffering lower profits or even losses and are cutting jobs, according to Chinese news reports.
Job losses could fuel political tensions, eroding the economic gains that underpin the Communist Party’s claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China’s growth is higher than in other developed economies, many industries depend on a much faster expansion.
Construction was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities....
On Thursday, China’s main government pension fund added its firepower, announcing $159 million in financing for a public housing project in Wuxi.
Some economists suggest the decline might be more severe than reported, citing rumors that utilities have been told to make the economy look healthy by inflating electricity consumption data....
Yeah, right, the Chinese manipulate their economic data (blog editor rolls his eyes toward the ceiling while turning away from the computer screen).
Is it anything like what the banks did with the LIBOR?
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Next Day Update: Romney rips Obama on China despite investments
