Have Short Sighted Automakers Placed The Keys To OUR Future In Chinese Hands?

While the auto industry in western countries is still struggling from the effects of the global downturn, Chinese companies are on a buying spree. Items on their shopping list include parts suppliers and famous international brands such as Volvo and Hummer.

Some commentators would say the best thing about the big slump has been to give China the opportunity to acquire prestigious foreign marques, along with the technology they owned. But in my opinion, the biggest benefit to China's auto industry has been something less tangible; knowhow.

Since western economies turned sour, hundreds of Chinese auto industry professionals have returned to their motherland. With them, they have brought knowledge and experience gained from many years of studying and working in the United States and Europe.

Many are now working for major state-owned automakers such as Beijing Automotive Industry Holding Corp. (BAIC) and Shanghai Automotive Industry Corp. (SAIC).

BAIC has hired more than 100 "sea turtles" – a phrase used in China to mean Chinese returned from overseas. One of them is BAIC's general manager Wang Dazong. After graduating from Cornell University with a Ph.D. degree in 1985, he worked his way up to engineering manager and technical fellow in GM.