EUROPE IS UNDER GRIPS OF CHINA’S NEOCOLONIALISM

 
 

EUROPE IS UNDER GRIPS OF CHINA’S NEOCOLONIALISM

 
 

Zhejian Geely Holding, Chinese automaker which owns VOLVO has acquired 9.7 percent stake in Daimler. In my analysis, Europe is under grips of China’s Neocolonialism. It seems Germany is not able to defend Daimler’s Intellectual Property Rights from relentless attacks by Chinese Economic Expansionism.

 
 

Rudranarasimham Rebbapragada

SPECIAL FRONTIER FORCE

 
 

 
 

CHINA’S GEELY RAID ON DAIMLER REIGNITES GERMAN KNOW-HOW FEARS

 
 

Clipped from: https://www.reuters.com/article/us-daimler-geely/chinas-geely-raid-on-daimler-reignites-german-know-how-fears-idUSKCN1GA048

 
 

 
 

BERLIN/FRANKFURT (Reuters) – Automaker Geely’s purchase of a $9 billion stake in Mercedes maker Daimler rekindled fears in Germany on Monday of its highly-prized expertise falling into Chinese hands.

Economy minister Brigitte Zypries stuck to Berlin’s position that Geely’s [GEELY.UL] swoop was a business matter but said Germany’s openness must not be not exploited by other countries.

 
 

Geely, which owns rival Swedish carmaker Volvo, is pushing Daimler for access to know-how in electric and autonomous cars.

Germany tightened its rules on foreign takeovers last year, the first European Union country to do so, after a series of deals saw China gain access to high-tech know-how, while attempts by German companies to buy full control of Chinese rivals remains prohibited.

Although under German law, the government can only intervene if a threshold of 25 percent is exceeded, investors must abide by market rules, Zypries said in interviews with Daimler’s home-town newspaper Stuttgarter Zeitung and Handelsblatt newspaper.

Geely revealed its 9.7 percent stake in Daimler (DAIGn.DE) on Friday, surprising the market as it had not disclosed having crossed regulatory thresholds of 3 and 5 percent.

Financial and markets regulator Bafin, which oversees the proper disclosure of stakes said it was investigating whether there had been any breach of disclosure rules, which can result in fines of 10 million euros or more.

The Chinese carmaker first approached Daimler in November and asked it to issue shares, so it could buy a stake, as well as for access to battery technology to help set up an electric car joint venture in Wuhan, China.

Daimler, which employs 289,000 people, declined to do a deal as it had reservations about a new industrial alliance for fear of alienating its existing Chinese joint venture partner BAIC (1958.HK), a person familiar with the carmaker’s thinking said.

Daimler and BAIC on Sunday said they were planning to co-invest more than 11.9 billion yuan ($1.88 billion) to build a new local production base.

“Daimler has already rejected Geely’s overtures once, and Daimler execs we spoke with argue it’s simply not clear what Geely could offer Mercedes,” Bernstein Research analyst Robin Zhu said in a note.

 
 

STEALTH RAID

Geely responded to the rejection in November by enlisting Dirk Notheis, the former Chief Executive of Morgan Stanley in Germany and Yi Bao, a former CEO of Morgan Stanley Huaxin Securities, sources familiar with the matter told Reuters.

Notheis, who declined comment, and Yi Bao, who could not be reached, devised a way for Geely to build a significant stake in Daimler using aggressive takeover tactics which German regulators had sought to quash.

Daimler AG70.23

DAIGn.DEXetra

-0.18(-0.26%)

  • DAIGn.DE
  • 1958.HK
  • 0175.HK
  • 000333.SZ
  • KU2G.DE

Geely worked with Bank of America Merrill Lynch, which declined to comment on Monday, to help secure a 9.69 percent voting stake using derivatives to help skirt disclosure requirements, two people familiar with the deal told Reuters.

Mercedes-Benz executives in Stuttgart were at first caught off guard by the approach but welcomed Geely in meetings on Monday to see how to “constructively discuss” industry changes.

Zhejian Geely Holding also owns several other carmakers including Sweden’s Volvo Cars, London’s black-cab maker LEVC and its own Geely Automobile Holdings (0175.HK). It has agreed to buy a $3.3 billion stake in Volvo Trucks.

KNOCK-ON IMPACT

The first sign of wider ramifications from Geely’s move on Daimler surfaced on Monday as Volvo Trucks dropped the chief executive of Geely’s Volvo Cars from its board, citing competition concerns with rival Daimler.

And EU trade ministers will meet this week to discuss a range of issues including how better to protect strategically important European companies from unwanted investors.

Several major deals during 2017 raised German sensitivities about multi-billion euro foreign takeovers, notably Chinese home appliance maker Midea Group (000333.SZ) buying German robotics firm Kuka (KU2G.DE), and Hong Kong billionaire Li Ka-shing’s buying German metering firm Ista.[L8N1QG3VD]

“The events of last Friday are the latest demonstrations of China’s growing confidence and assertiveness, growing desire to impose its will on global affairs, and growing willingness to exploit the German OEMs’ heavy reliance on Chinese profits,” Bernstein Research said.

Reporting by Michael Nienaber in Berlin, Georgina Prodhan, Arno Schuetze and Edward Taylor in Frankfurt and Johannes Hellstrom in Stockholm; Editing by Keith Weir and Alexander Smith

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Published by WholeDude

I seek harmony between doctrines of Idealism and Realism to account for human existence. I welcome thoughts from all directions to understand the nature of Human Identity and Individuality. The multicellular human organism exists as Physical, Mental, Social, Moral, Spiritual being with a Creative Form that cannot be duplicated. For purposes of brevity and simplicity, I divide the human being into two categories; 1. The first is 'SELF' and it represents man as Physical, Mental, and Social Being and 2. The second is, the 'KNOWING-SELF' which represents man as Moral, Rational and Spiritual Being."I am Consciousness, therefore I am", is the proposition that I use to understand the nature of man's Identity and Individuality. Man is a Mortal Being whose Life and Death are operated by Oxidation-Reduction Chemical Reactions. The Physical Being is dissolved by the powerful influence of Time which seem to operate Natural Law of Aging. Things in Nature change with Time but the Identity and Individuality of Man remains the same during his Life Journey. The genotype remains unchanged while the phenotype appears to be changing all the time. In the multicellular human organism, the Consciousness functions to establish Identity of the organism and to defend its Individuality. Consciousness also establishes the Connection, Partnership, Relationship, Yoking, Joining, and Association between the energy dependent man and his energy provider. Man exists in Nature because of his ability to acquire energy from external environmental source. Consciousness in its essence refers to this awareness of energy dependence. I describe the Connection between energy seeker and energy provider as 'God Connection'. Man during all the stages of his existence, and under any given circumstance, either in good health, or ill-health exists on the basis of this 'God Connection' which is an attribute of biological or living function called Consciousness. This conditioned nature of human existence is supported by Power/Energy/Force which can be experienced as Compassion/Mercy/Grace of the Creator who created man as an Individual with unique genome that has never existed in the past and also will never exist in the future. I seek the Unity of Man in Body, Mind, and Soul unlike other common Indian traditions that seek to verify Identity between Human Soul and Divine Soul. My doctrine can be described as Unity Theory of Non-Dualism.

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