It’s great that Chinese companies may want to buy Chrysler or GM. That’s how the free enterprise system works. Companies are priced at a fair market value in public exchanges (if they’re publicly held) and then anyone with the cash can buy them, just like any products are bought and sold a la Adam Smith. IBM was able to unload its no-longer viable personal computer business to Chinese investors. It’s a great way to get money back into the hands of American businesses and investors. And as John Dodge pointed out on his Facebook page, GM has a capitalization of only $1.35 billion at current stock prices. GM has a large product development center in China and Buick is one of the top-selling brands in China. Most importantly, a Chinese buyout of GM or Chrysler saves US taxpayers a lot of cash.
Divestiture of assets to foreign investors is not a great long-term strategy, however. Our weak financial situation is a result of years of deficit spending and a bulging federal debt. If you’re mad about General Motors going bust—don’t be mad at me. Be mad at your own spending and voting patterns.