economy - Another sino-foreign venture falls apart: Alcatel, TCL

Happier days

Alcatel sold today a 55% stake in the Hong Kong entity of the Chinese electronic products producer TCL for 55 million euros, Bloomberg reports, nine months after the EU gave her blessing to the purchase of TCL by Alcatel. The Paris-based company still retains 45% of the company.

Growing losses of TCL were the main reason to get rid of the Chinese company.

While China is conquering the world with cheaper imports, making the high-end deals work is still much harder to do. Also the IBM-Lenovo deal is encountering problems, media reported yesterday. Also Haier is developing more problems, says some in the market. While Chinese companies are trying harder to get foreign experts and managers in their operation, only four percent of those foreigners stay on longer than one year, an upcoming article in the HR-newsletter of Chinabiz will show. Moving up the food chain proves to be hard for Chinese companies.

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