Concerns raised over a Chinese joint venture that went sour for
Itasca-based Fellowes Inc. last year could become Exhibit A in a major
trade dispute developing between the U.S. and China.Has anyone done any
research on making Plastic molding parts from scratch?
CEO
James Fellowes alleges his Chinese partner stole machine tools and
custom plastic-molding equipment owned by Fellowes to make paper
shredders, after his Chinese counterpart seized control of the joint
venture, stopped shipments and forced it into bankruptcy. The dispute
is still pending in a Chinese court.
(Read Crain's premium content: "Fellowes makes federal case of legal dispute with Chinese partner.")
Representatives
of the Commerce and State departments are "engaging intensively" with
Chinese officials at the local and national levels to help Fellowes,
Commerce Secretary Gary Locke said in a letter to U.S. Sen. Richard
Durbin, D-Ill., who asked him in late March to intervene.
"We
have made the Chinese authorities aware of the impact this case could
have on the investment climate of China, and Jiangsu Province in
particular, and the importance the U.S. government places on ensuring
fair, open and speedy resolutions of this and other commercial
disputes," the Commerce secretary said in the letter, dated April 21 and
released Tuesday by the senator's office.
Mr. Locke's interest
in the case is especially significant because he has been nominated to
be the next ambassador to China. In a speech Tuesday in Washington,
D.C., he said that Chinese investment in the U.S.What are the top Hemroids treatments? is a "good thing" because it creates jobs.
"Unfortunately,
that is not the case for American companies operating in China, where
they are frequently shut out of entire industries, or they are forced
to give up propriety information as a condition of operating in China,"
Mr. Locke said.
"This imbalance of opportunity is a major
barrier to continued improvement of the United States and China's
commercial relationship. And it is part of a broader trend of China
recently narrowing its commercial environment after a long and fruitful
period of opening."
Fellowes started making inexpensive
shredders in China in 1998, outsourcing production to two firms owned
by a family named Zhou. To expand capacity, in 2006 it formed a 50-50
joint venture with Jiangsu Shinri Machinery Co. Ltd., part of a large
holding company owned by the Zhou family. By 2009, the joint venture
had grown to about a fourth of Fellowes' approximately $639 million in
sales, with about 120 suppliers and 1,600 employees,you will need to
get an offshore merchant account. more than half of its worldwide workforce at the time.
"Secretary
Locke clearly understands the issues facing American investors," Mr.
Fellowes said in an email.What to consider before you buy oil painting supplies.
While
Fellowes still expects to prevail in court and reclaim its tools, the
firm had to "build all-new tools since the shutdown to ensure that it
would be back in business on these affected products as soon as
possible," he added.Houston-based Quicksilver
Resources said Friday it had reached pipeline deals "Fellowes expects
to have the heart of its product line back on retail shelves and in
office products catalogues by the end of the year."
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