by Schumpeter
THIS week's plain-speaking prize goes to Jeff Immelt, the boss of General Electric.
He argued that China is increasingly hostile to foreign multinationals; he also gave warning that his company, the world's biggest manufacturer, is actively looking for better prospects in other emerging markets. "They don't all want to be colonised by the Chinese", he said, going rather further than was prudent. "They want to develop themselves".
Mr Immelt's broadside was undoubtedly significant. It reflects a growing mood of disillusionment with China among big Western companies. It came from the mouth of one of China's biggest boosters, a man who praised the Chinese leadership, only last December, for doing exactly what they say they will.
Is Mr Immelt right about the changing mood in China? The Chinese are certainly unusually self-confident at the moment, thanks to the financial meltdown. They have flexed their muscles against a succession of companies, including Rio Tinto and Google.
But the Chinese have always driven a hard bargain, and they have always made it clear that they will give only to get. The American Chamber of Commerce reported in 2008 that three-quarters of the foreign companies that they surveyed were finally making money in China, a big increase on the historical average. Many Western companies, notably Yum! Brands, have finally cracked the China code, and are becoming ubiquitous across the country.
It will be interesting to see how Immelt's comments play out in China, a country which puts a great store on "face", and which does not take kindly to even gentle criticism, let alone talk of "colonisation".
Google seems to be retreating, with its long tail between its legs, from its bold challenge to Chinese authoritarianism. It will therefore also be interesting to see if, sometime in the near future, Mr Immelt finds himself delivering a speech with a rather different message.
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