A while back, I commented Bain Capital and Huawaei’s proposed purchase of 3-Com’s with Huawei taking a 16% share. The Committee on Foreign Investment has nixed the deal, citing security concerns.
Bain functions as an advisor to 3-Com, as does Goldman Sachs.
Huawei’s lineage is a bit obscure. Although it “seems” to be an independent entity, we do know, at the very least, that it has close ties to the Chinese military and to the Chinese government. Those ties were close enough, apparently, to cause the Committee on Foreign Investment to act.
Be all that as it may, nothing can deter progress. Who or what wants to go east will go east.
3-Com is beginning to restructure,
by moving research and development and engineering functions to China and India
3-Com needs to be a more profitable enterprise, as I am sure its advisors so counseled.
On a more mundane front, the next dental crown or bridge you use may be from China. Be sure to check it for lead.
On another yet front, I hear that large signs may soon be offshored. I find that depressingly amusing. Signs, of course, encourage you to buy stuff. The fact that they may soon be made elsewhere and put up here….well, the irony is too much even for me.
Yes, yes, I know…all in the name of progress.
But I ask yoularge inflatable water slides, if a country makes less and less, trades less and less, does it not have to rely more and more on credit? And credit is something we have been very good at creating and packaging.