This bizarre article on China Economic Net considers the plan for the Chinese to buy Wal-Mart. Really:
Recently some Chinese experts have put forward an idea that Chinese enterprises could become Wal-Mart's shareholder by strategically purchasing its stocks and by this way setting up a most facilitative channel for Chinese commodity". This suggestion immediately incurred strong oppositions...For those who put forward the idea of "acquiring Wal-Mart", they think that Wal-Mart has perfect corporate governance structure and sound management, therefore it is a rational anticipation for Chinese side to share the enormous profit brought by Wal-Mart.
It is true that the smooth performance of the whole Wal-Mart system relies on its perfect procedures and an outstanding management team. However, by now in China there has been no such management team that can run Wal-Mart, which makes the idea of acquiring Wal-Mart a dream that can't come true. If now Wal-Mart were acquired by Chinese, it could be anticipated that Wal-Mart go broke within a period of 3 or 5 years....
The proposal put forward by domestic experts is established only from a seller's point of view, which put emphasis on acquiring Wal-Mart as a distributing channel to directly "dump" Chinese products. However, it will ruin Wal-Mart.
Posted by Kevin on May, 27 2005 at 10:22 AM
