I found this story about China setting up its own auto-company, learning from its joint ventures with GM and Volkswagen over on Billsdue. He makes an interesting point when he writes,
“This is classic Chinese industrial policy at work. Squeeze the foreigners for technology and management expertise by promising access to the “huge, massive, gigantic” market of a businessperson’s dreams, give the foreigners just enough business to keep them focused on the “potential”, and then once they have sucked out what they need set up a competitor.”
I wonder if all those VCs who are going to China to invest will learn this lesson the hard way.