Chinese firms unite against US short-sellers

Updated: 2012-09-06 13:21

(Xinhua)

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In 2005, China's offshore oil company CNOOC failed to purchase US-based Unocal under heavy pressure from American political circles and public opinion. Earlier this year, Australia turned down China's leading IT company Huawei's bid for equipment for a pan-Australia broadband network project.

In addition to these setbacks caused by Western biases, these companies' lack of experience in contacting the local public and media has also been an issue.

It also has something to do with the Chinese tradition of working hard and making money in a low-profile manner. However, public image-building and public opinion are playing more and more important roles in a world featuring globalization and informationization.

Fortunately, Chinese companies are maturing and have already made some progress. In the face of falsified negative reports issued by Muddy Waters in 2011, Spreadtrum, a NASDAQ-listed Chinese IT company, responded with swift and transparent information disclosure and frustrated Muddy Waters' conspiracy to short the company.

Analysts said the joint counterattack by Chinese technology and business leaders this time was inevitable, as Chinese companies have accumulated enough experience to face the challenge.

Kai-Fu Lee and other tech giants have showed that Chinese companies are learning to protect themselves with rules and public opinion. They are also trying to wipe out the image of themselves as sheep for slaughter in foreign capital markets.

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