China’s private companies are being affected by the perceived ties it has with the Communist party. State-owned enterprises (SOEs) of China that prospered because of cheap loans and subsidies are giving a bad name for privately held companies in China. SOEs would be losing money if their subsidies and loans are taken away. They don’t give back to the government and officials who run it becomes more powerful than communist party leaders themselves and prevent any regulation. Chinese private companies have been expanding its reach world-wide. When Chinese private companies buy into sensitive industries (security or tech related) world-wide the transactions are flagged by the home government. Recently, US Congress has issued a warning preventing two Chinese telecoms company into expanding in the US market. President Obama also blocked a Chinese private company from buying a wind farm near an American military installation in Oregon according to the article. The Chinese companies or SOEs are suspect of spying for the Chinese government.
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by Albert Aguirre
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