Honda Strikes in China Contrived; And at Order of PRC Government

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eMOTION! REPORTS.com sources say the recently resolved strike at Honda China facilities and the newest initiated were, are and at the instigation/permission of, Chinese authorities. "Anyone with the most basic knowledge of how this still Communist regime operates knows that such overt displays of civil disobedience are met, not with words or higher pay, but with bullets," notes one ER analyst.

Female PLA Militia on Parade -- Image: Xinhua

Bloomfield Hills, Michigan June 8, 2010 (PressReleasePoint) -- According to eMOTION! REPORTS.com, an automotive/aerospace industries research and analysis site targeting professionals within the academic media, corporate and government sectors, their sources are advising the recently resolved strike at Honda China facilities and the newest initiated were, are and at the instigation/permission of, Chinese authorities.

"Anyone with the most basic knowledge of how this still Communist regime operates knows that such overt displays of civil disobedience are met, not with words or higher pay, but with bullets," notes one ER analyst.

"We believe this to be the aftermath of China's anger and embarassment, five years hence, against Japan orchestrtrating a removal of its most advanced manufacturing technologies and top technical people subsequent to its conclusion that intellectual property, patent and other rule of law issues would not be resolved", says this ER analyst.

"Most embarrasssing to China was the fact of Japan corporations, aided by intelligence services, carried out the removal right under their noses, leaving pre-1987 manufacturing processes to partly fulfill, or at least give the appearance of, meeting existing agreements."

Unfortunately, says this analyst, Western corporations, being less cognizant of the Eastern business mindset, inclusive of a vast ideological divide as it relates to Communist China's homegrown version of capitalism, did not follow suit despite being warned by Japanese and US intelligence services.

"At the core of this 'strike'," says the analyst, "Is China's attempt to create a facade of a 'Westernization' or 'Democratization' of their business operational and regulatory environment and architecture. And, specifically designed to allay the fears of Western corporations either doing business, or seeking to establish business, in China.

" It is a carefully crafted deception, as China's unparalleled offensive military build-up continues to the consternation and concern of US DoD planners, NATO and strategic allies inclusive of Japan, South Korea and India."

eMOTION! REPORTS.com Publisher Myron D. Stokes believes it is appropriate to compare the revelations in this 2005 analysis with the recently released "2009/2010 Auto Industry Analysis: GM's Transition to China". http://www.slideshare.net/GHHLLC2/20092010-auto-in... http://www.pressreleasepoint.com/20092010-auto-ind...

"The data compiled is designed to give interested parties a more expansive knowledge of China's aspirational DNA and conclude rather readily that the PRC has not changed ideologically since its founding in 1949, " says Stokes. Their accomplishments are laudable in geo-economic and military aspects, but as colleagues note, such gains continue to be at the expense of their trading partners."

The original analysis, in the form of a media advisory from the Publisher, follows.

Media Advisory December 5, 2005

The Japanese Exodus: Japan firms quietly leaving China; GM Facilities at Risk

Good morning:

It has been observed by our global sources that several Japanese firms are quietly removing their high value assets in China both technological and human. This is occurring because of Japan's dissatisfaction with the Chinese government's unwillingness to enforce the law and effectively manage Chinese Triad activity.

German Heavywater Facility Norway 1943 Image: RAF/SAS

This all but clandestine operation, now in its final stages and apparently coordinated with Japanese intelligence services, placed a priority on the most valuable facilities, the technological and manufacturability components of those facilities, and has been accomplished with a precision rivaling the disabling of Norway-based German heavy water operations at Rjukan supporting nuclear weapons development in February 1943. The latter having been accomplished with no loss of life on either side.

This comes on the heels of a public domain report provided by the US State Department in response to a China business climate request by Industry Canada in 2004. The report can be read in its entirety at http://strategis.ic.gc.ca/epic/internet/inimr-ri.n.... But the report, sourced by the Japanese government, paints a grim picture of a steadfastly non-cooperative China state of affairs, and qualifies as a PRA (Political Risk Assessment).

"Apparently, the Japanese have decided that enough is enough and have moved decisively to mitigate impending losses."

Points of profound interest include the following notations:

"According to Japanese government sources, Japan and China held bilateral auto industry talks on April 6 [2004] in Beijing for the first time in 10 years after two years of preparations. Government officials and industry executives from both countries participated. China has expressed its intent to hold such bilateral auto talks with other countries, such as South Korea, Great Britain, the United States, and Germany, all which are very interested in investing in the Chinese auto market. The talks focused on three main areas -- China's proposed new auto industry policy, distribution and used car auto parts.

"Both parties are reported to have agreed that they will now hold auto talks annually instead of waiting another ten years. Only time will tell whether the Chinese heard the concerns of the Japanese government and carmakers and are willing to act on these concerns".

Apparently, the Japanese have decided that enough is enough and have moved decisively to mitigate impending losses.

"China is having a difficult time managing all this [growth] at one time", says national security strategist and Congressional investigator Dr. Sheila Ronis. "We are beginning to see a pattern of Western businessmen balking at their demands, and the question I believe appropriate to ask at this time 'Is it possible we have found an Achilles heel in this complex adaptive system, this Chinese industrialization/commercialization juggernaut?'

"They thought they could get away with this badgering-of-foreign-commercial partners-into-submission-as-national-policy a lot longer. China was naive in this.

"As a communist government, they underestimated Western, and as is apparent from this reported Japanese withdrawal, a level of Eastern, ways of doing things. There was also an unexpected introduction to the Western mentality of "you think you're going to steal from me forever?"

Triad Activity Unchecked: GM and Other Foreign Manufacturers at Risk

"As is typical, Western companies could learn a lot from the lessons Japan taught before. They are the consummate learning culture(http://www.slideshare.net/GHHLLC/hyperintelligence...) and we should take advantage of it. They obviously know something we don't, and part of that lesson is the Triad threat is real", says Ronis.

"A recent publication 'The Real War Against America' by Brett Kingstone, reveals the reality of this threat with specificity," notes Ronis. "Now we know that the Triads and the Chinese government don’t respect or protect intellectual property rights. "If GM couldn't prevent the theft of an entire vehicle platform as was the case with Chery, then nobody can."

Congressional Report on Erosion of The Industrial Base Imminent

In a forthcoming report to Congress, investigator Dr. Ronis says that the Triad influence in China remains strong, and the Chinese government has little ability to stop it. "China, she says, "is after all not a rule of law country."

We could not help but make comparisons to the warnings raised about such a threat to GM in the analysis "Crisis On Asimov: A Vision of 2085" (http://www.emotionreports.com/downloads/pdfs/Asimo....) the output of Department of Defense "visioning" processes as originally developed by the RAND Corporation, it was an early warning to the company and the US auto industry as a whole relative to Triad influence

GM Chairman Rick Wagoner has recently spoken in a very positive way about their growth in the Asian market both in manufacturing and sales. It appears he has little choice but to do so simply because China has GM in a strategic and tactical bind: They can disrupt GM's ocean-borne global supply chain at will, and has coerced them to make significant manufacturing technology and infrastructure contributions beyond that originally planned in exchange for the opportunity to be a primary participant in China's burgeoning car market.

http://www.emotionreports.com/china/index.html

Adding to the difficulty he faces through inducement of a "between a rock and a harder place" scenario, Wagoner has to deal with an unsupportive, unreasonable Wall Street who is apparently unaware they have helped set a perfect trap for the world's largest automaker. How? Through their insistence on off shoring of manufacturing capacity to meet profitability/fiduciary responsibility goals while giving no credence to the critical need of maintaining a viable industrial base.

http://www.emotionreports.com/Super_Globalism/supe...

Loss of Intellectual Resources

According to a colleague in government, "GM should have the guts to tell Wall Street and China to go to hell; they'll craft their own recovery strategy without the street’s self-serving interference."

Unfortunately, GM's recovery strategy is rendered less viable owing to the fact of depleted intellectual resources in its mad dash to reduce costs. "The cadre of brilliant engineers and designers like Bob Dorn and Dave Hill are all but gone, although thankfully, Tom Stephens still remains," Ronis says.

"The same sources report 'China will probably throw out GM in a few years because they don't need them any more. They will take over their facilities'."

The burning question is whether they can rebuild the brain trust. Answer: Yes they can because they must. It is also apparent that GM has to start looking inward -- at least geographically -- for near term effective solutions to its manufacturing efficiency and profitability concerns.

"Dependence on an Asian solution," says Ronis, "is not wise or viable, at least, not to the extent envisioned."

Why? Ronis says "China will probably throw out GM in a few years because they don't need them any more. They will take over their facilities."

GM and other foreign companies doing business in China would be wise to heed Dr. Ronis' suggestion that they invest no more in China than they can afford to lose because the risks -- now apparently proven -- are so high.

Montana: Land of Opportunity? Image: Danielson

"The advice that my colleagues and I would give is 'Don't go offshore, go to a low cost state like Montana, West Virginia, northern Alabama, Louisiana or Mississippi where labor costs can be more manageable." -- Dr. Sheila Ronis

Back to the Japanese.

It is not difficult to discern where they are moving their China assets: India. It was and is the logical destination because that country, thanks to a long tradition of stable governance, and its experience with the British Empire, has democratic process, rule of law, English as a second language and a level of populace education easily the equal of China.

All well and good -- for the Japanese.

According to Ronis, GM, Ford, Delphi, Visteon and other companies forming the core of the US manufacturing base do not have to seek an easing of cost pressures externally: The answer is as close as state borders.

"The advice that my colleagues and I would give is 'Don't go offshore, go to a low cost state like Montana, West Virginia, northern Alabama, Louisiana or Mississippi where labor costs can be more manageable.' The economic stimulus resulting from expanded manufacturing capacity within such states will benefit the entire country through stabilizing/mitigating industrial base erosion.

"What's nice about a place like Montana, despite lacking a working populace with the necessary skill sets, is that people who are highly skilled would be willing to move there if there is appropriate infrastructural development."

One final thought: The recently released report on China auto industry development by University of Michigan's OSAT (Office For The Study of Automotive Transportation) researchers in collaboration with IBM, although accurate in its assessment that China would become a dominant economic force in 10-20 years, fails to point out the ramifications for this country should that occur in as little as a decade.(http://www-1.ibm.com/services/us/imc/pdf/ge510-622...)

China, without doubt, has emerged and continues to emerge, as an economic, political and military force. And, the geo-political consequences are being closely observed by those who believe that it is "not a matter of whether this country will fight China militarily -- the economic war is already being fought in a Sun Tzu sense -- but when."

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Report compiled by eMOTION! REPORTS.com staff and its consultants. Fair use is hereby authorized for media, academic and corporate entities for research and reportage purposes with appropriate acknowledgement.

Copyright 2005, All Rights Reserved

Events of interest today, June 8, 2010 related to the content of this release:

Hearing on “Evaluating China’s Past and Future Role in the World Trade Organization.” The hearing will examine the economic, political and security implications of China's entry into the WTO and China’s compliance with WTO rules. The United States-China Economic and Security Review Commission http // www uscc gov

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