State owned companies on the international market

Discussion in 'Economy' started by Munin, Feb 10, 2009.

  1. Munin
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    Munin VIP Member

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    Can anyone explain to me why state owned companies from both Russia & China have access to the international market and are able to compete with private companies. Gazprom for example is one of those companies, then you have numerous other state owned companies (investment funds, ...) from China that invest in private banks. This way the government of China actually owns "private" banks, doesn't this create a dangerous situation?

    Here is an example of Ping An, a chinese government owned company that owns a percentage of the European Bank Fortis. (it is an old link but it is still relevant) Ping An to buy major stake in Fortis unit - International Herald Tribune

    There are numerous other examples of state owned companies buying into other private companies in Europe & America.


    Isn't the principle of the international free market in which all private companies operate in based upon the principle of non-government interference? If you have for example only a national free market in which private companies operate in, then it would be unfair if the government who sets up the rules in that market also owns a company in that market. Why isn't this principle also abided by on the international scene?

    There have been serious examples of this security threat in the "recent" past:

    [ame=http://www.youtube.com/watch?v=rwN-ZJkHez8]YouTube - China's New Threat to US National Security[/ame]

    Why is it even possible that a foreign government is able to buy into a private company in the US or any other country?

    Are the guys in the government really that big idiots?
     
    Last edited: Feb 10, 2009
  2. RodISHI
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    RodISHI Gold Member

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    Just hope they treat ya'll well when they take over.
     
  3. Munin
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    Munin VIP Member

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    Yeah, we all know that China is known for treating workers well :tongue: .
     

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