The China Factor

Chinese Army Unit Is Seen as Tied to Hacking Against U.S. http://www.nytimes.com/2013/02/19/technology/chinas-army-is-seen-as-tied-to-hacking-against-us.html?emc=na&_r=0

 

Despite the growing proliferation of Chinese Economic interest worldwide there is definitely an aura of scepticism on it's supposed hidden agenda. Beyond economic conquest of Chinese interest, the fear seems louder in the area of political exaltation amongst the developed world. The question often arises as to how  independent are Chinese corporations void from Chinese government stake. 

From the hacking incident at the Dalai Lama's office in India, to the denial of telecommunication supplies by the British government during the London Olympics points to one direction ie. FEAR.  In October 2012, American companies and its government was advised by the US House of Representatives' intelligence committee  to avoid doing business with China's two leading technology firms, Huawei and ZTE, because they are believed to pose national security threat. Similarly in Canada the $15billion takeover of Nexen by CNOOC did not materialise after much deliberation. The Canadian government has assured that this would be a one time deal and future investment would be combed independently. 

Interestingly China has no problems in troubled African nations and it's investments in Sri Lanka gave rise to many speculations particularly on how Sri Lanka managed it's long drawn internal conflict. 

With more exposure of political espionage purportedly committed by the Chinese, the brunt of the blame goes to Chinese Corporations owing to their visibility. Whether the threat is real or otherwise Chinese corporations are going to be continuously bombarded with this stigma. By virtue of this greater resistance can be expected to be instituted by the developed world to make it difficult for Chinese corporation to have liberal investment mobility.  What can the Chinese government do to elevate this predicament? The current government under Xi Jinping has a lot of homework to do to reengineer itself away from this impression by creating complete independence towards corporate governance in China. Than maybe!