In Dracula films it is his teeth that shakes the audience
off their seats. So frightful is the blood sucking dentitions that the sight of
it gives two kind of feelings: fear and loss. Recent Nexperia takeover by
Netherlands is only the tip of the iceberg. Expect more showing of Dracula Teeth:
The EU is trying to alter her domestic investment policy
whereby foreign companies who intend to set up or already are operating tech companies
within EU have to part with their IP or key technology behind their operation
to the EU authorities.
Once the key technologies are so handed over to EU authorities
investing companies would tend to lose their techno edge in promoting their business within EU. These
key technologies then would be made available to companies that are domestically
incorporated fully owned by EU citizens, who receive highly valuable assets in
the form of software and hardware without spending a cent.
On the other hand the foreign investor get fixed in
a situation where he has to compete with his domestic rivals only at the labour cost and nothing else.
This manoeuvre in the EU business strategy smacks not only of thievery on their
part but hypocrisy too. All these years EU companies made it a condition
while investing abroad that their key technologies including IPR would be held close
to their chest and states where factories or assembly lines are located are forbidden
to request any details of these.
Recent occurrence was in the case of Rafale
Aircraft assembly in India where Dassault Aviation the manufacturer of the jet
fighters would not part with their IPR even in the worst case scenario where several Rafale fighters were
shot down in the air battle between India & Pakistan.
The two lessons to be drawn is as follows:
a) China being the leading investor in EU as far as
manufacturing is concerned should produce low techy items within EU and transport to a Non-EU state inside
or outside European Continent for assembly lines where high tech
components could be fitted in before re-exporting back to EU countries.
b) As a reciprocal measure China should ask automobile companies such as
Mercedes Benz who have assembly or full manufacturing plants in China to hand
over their technologies and IPR in order
to be allowed to produce their vehicles inside China.
Navigating strategy amid geoeconomics mandates this measure be followed by China until such time EU returns to status quo ante.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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