Thursday, April 13, 2017


Bombardier is an example for many companies. First Chinese bought a lot of the products with a technology transfer clause. Then the Chinese build the products themselves usually cheaper and better and become their fierce competitor. 

It works in high-tech but not ultra high-tech companies. I expressed this concern on Bombardier several years ago. GE is a different story. The jet engine is too high tech. China will use GE's engines for its own planes but may never compete in foreign market due to US restrictions and it is hard to catch up to complicated technology. Even it is equivalent, do you want to fly on a jet produced by China even the life insurance is free?

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