Friday, February 4, 2011

China As A U.S. Defense Contractor?

A group of U.S. Aerospace executives in China last year posing in front of a Chinese L-15 trainer jet. U.S. Aerospace

China Eyes U.S. Defense Contracts -- Wall Street Journal

Hoping to Compete on Cost, Stealth-Jet Maker AVIC Teams With Tiny U.S. Firm; Any Bid Likely to Draw Fierce Resistance.

BEIJING—The maker of China's new stealth fighter jet has teamed up with a tiny, unprofitable California company to try to launch bids for U.S. defense contracts, possibly including one to supply Chinese helicopters to replace the aging Marine One fleet used by the president, according to people involved in the partnership.

Any Chinese bids for this or another contract under discussion would be certain to meet intense political resistance and would appear to have very little chance of success given mounting U.S. concern about China's military power and long-term strategic goals, and the often-prohibitive opposition in the past to Chinese attempts to enter other strategic U.S. sectors, such as energy and telecommunications.

Read more ....

My Comment: Many of my business contacts know that I have spent a lot of time in China since the 1980s, and they always ask me on what is the mindset of the Chinese. I have responded since then that the Chinese have the capitalism bug, and their sole motivation right now is to make money. Their attempt to become a contractor for U.S. defense/government bids does not surprise me one bit .... what will surprise me is if the U.S. Defense Department and government permits this.

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