As I have frequently said, China does not have as much separation of business and government as they want us to believe. The latest example comes in the form of "investment" opportunities for Chinese providers like Alibaba, Tencent, JD.com, and Baidu. They get to invest in China's state-owned China Unicom, their second largest carrier to the tune of $12 Billion, so that it might be more competitive. In the long run, it will certainly benefit the companies that use China Unicom, but then they do not have much choice, since telecommunications is state-owned, with no outside investment allowed. This creative financing exists nowhere else but in a Communist country that controls companies the way no other country does. These are state functions mixed with the business interests of the nation. It is a far cry from companies elsewhere in the world, yet China would have us beleive their businesses are just like ours.
Books by Dennis Poindexter
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