Confucianism and Trade Imbalances

The enlightened dictatorship of money

Posts Tagged ‘North Korea

Chinese company ‘Shanghaied’ in North Korea

with 2 comments

I ran into this little tidbit today (h/t Sinocism), which was so amazing that I had to blog about it.  I can’t find the (long) company press release in English, so I will go ahead and translate it.

I have to say, even though this is clearly expropriation, I don’t really have that much sympathy for Xiyang.  Even in China, some foreign investors in China’s energy sector have ended up in jail for violations of “state secrets” laws . Did they really think North Korea would have a friendlier environment for foreign investment than their home country? Note below that they said a tax on the order of 25% wiped out all of their profits.  Was a profit margin less than 25%, as healthy as that might be in other contexts, really worth the political risks here?

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Written by Maofucious

August 11, 2012 at 6:30 PM