President Obama mocks Mitt Romney’s tough talk on China

“[Romney's] been talking tough on China. He says he’s going to take the fight to them; he’s going to go after these cheaters. When you hear this newfound outrage, when you see these ads he’s running promising to get tough on China, it feels a lot like that fox saying, ‘You know, we need more secure chicken coops.’ I mean, it’s just not credible.”President Obama in Ohio on Wednesday

From David Corn in July: EXCLUSIVE: Romney Invested Millions in Chinese Firm That Profited on US Outsourcing:

Yet there is another aspect to the Romney-as-outsourcer controversy. According to government documents reviewed by Mother Jones, Romney, when he was in charge of Bain, invested heavily in a Chinese manufacturing company that depended on US outsourcing for its profits—and that explicitly stated that such outsourcing was crucial to its success.

This previously unreported deal runs counter to Romney’s tough talk on the campaign trail regarding China. “We will not let China continue to steal jobs from the United States of America,” Romney declared in February. But with this investment, Romney sought to make money off a foreign company that banked on American firms outsourcing manufacturing overseas.

[...] At the time Romney was acquiring shares in Global-Tech, the firm publicly acknowledged that its strategy was to profit from prominent US companies outsourcing production abroad. On September 4, 1998, Global-Tech issued a press release announcing it was postponing completion of a $30 million expansion of its Dongguan facility because Sunbeam, a prominent American consumer products company and a major client of Global-Tech, was cutting back on outsourcing as part of an overall consolidation. But John C.K. Sham, Global-Tech’s president and CEO, said, “Although it appears that customers such as Sunbeam are not outsourcing their manufacturing as quickly as we had anticipated, we still believe that the long-term trend toward outsourcing will continue.”

From The Washington PostRomney’s Bain Capital invested in companies that moved jobs overseas

But a Washington Post examination of securities filings shows the extent of Bain’s investment in firms that specialized in helping other companies move or expand operations overseas. While Bain was not the largest player in the outsourcing field, the private equity firm was involved early on, at a time when the departure of jobs from the United States was beginning to accelerate and new companies were emerging as handmaidens to this outflow of employment.

Bain played several roles in helping these outsourcing companies, such as investing venture capital so they could grow and providing management and strategic business advice as they navigated this rapidly developing field. [...]  In addition to taking an interest in companies that specialized in outsourcing services, Bain also invested in firms that moved or expanded their own operations outside of the United States.

[...] Just as Romney was ending his tenure at Bain, it reached the culmination of negotiations with Hyundai Electronics Industry of South Korea for the $550 million purchase of its U.S. subsidiary, Chippac, which manufactured, tested and packaged computer chips in Asia. …An overwhelming majority of Chippac’s customers were U.S. firms, including Intel, IBM and Lucent Technologies.

A filing with the SEC revealed the promise that Chippac offered investors. “Historically, semiconductor companies primarily manufactured semiconductors in their own facilities,” the filing said. “Today, most major semiconductor manufacturers use independent packaging and test service providers for at least a portion of their . . . needs. We expect this outsourcing trend to continue.”

AND THERE’S THIS: More hidden camera video – Romney talks about Chinese sweatshop he bought; claims barbed wire fence and guard towers were to keep hopeful workers out 


Also does anyone doubt that if given half a chance, the kinds of working conditions Willard describes in that video are what he and his corporate buddies would like to offer American workers? Fences around factories! 12 people per dorm room! Earning a pittance for long hours! JOBS FOR EVERYONE! Marvelous! 

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2 thoughts on “President Obama mocks Mitt Romney’s tough talk on China

  1. Pingback: Mitt Romney got a tax break on 2011 return from a firm shipping Illinois jobs to China | Under the Mountain Bunker

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