Fuyao chief criticizes US ‘ fake news’
Glass company chairman denies reports of labor wo
“It will become common for more Chinese companies to face culture clashes while making investments overseas.” Liang Jun a research fellow at the Guangdong Academy of Social Sciences
The head of China’s leading auto glass manufacturer Fuyao Glass Industry Group on Tuesday dismissed reports that the company’s business in the US is in trouble, saying that US media “exaggerated” the situation and domestic news outlets should not do likewise.
“The New York Times failed to tell the truth about Fuyao, but what I am surprised about is that Chinese domestic media also followed suit,” tycoon Cao Dewang wrote in an exclusive article for the Global Times published on Tuesday.
Cao is the founder and chairman of Fuyao, which has a manufacturing plant in the US state of Ohio.
The New York Times reported on June 10 that “Fuyao faces an acrimonious union campaign by the United Automobile Workers” union and a lawsuit by a former manager who claimed that he was “let go” partly because he is not Chinese.
The report sparked widespread discussion in the Chinese media. Some Chinese media also published reports with such headlines as “Employees from Fuyao US plant take to the streets.”
In his article, Cao disputed such claims. He noted that the New York Times mainly interviewed some former employees from Fuyao, but he claimed that about 30 percent to 40 percent of the interview content was untruthful.
“I’m so surprised that Chinese media used fake headlines to lure readers,” said Cao, adding that he hoped to see serious reports and analysis in the media rather than exaggerated and fabricated words.
“It will become common for more Chinese companies to face culture clashes while making investments overseas,” Liang Jun, a
research fellow at the Guangdong Academy of Social Sciences, told the Global Times on Tuesday.
Liang said that Chinese investors and the public, as well as the media, should take a rational view of these issues, noting that Chinese firms also need to be fully prepared when they face friction resulting from cultural or legal problems in overseas markets.
Fuyao’s US plant, which cost $ 600 million, started operation in October 2016. The plant sells to customers including General Motors Co, Chrysler LLC, Hyundai Motor Co and Honda Motor Co, according to media reports.
Cao said that he has no objection to the presence of the US union, which refl ects the local culture. He said that he has 20 years of experience in investing in the US and his firm has good relations with the union.
He also said his company has talked with local officials in Ohio and that the state government supports Cao in letting people know the truth.
Cao explained why he didn’t immediately deny the New York Times story. He said it was partly because he questioned the newspaper’s purpose of publishing the story on June 10, just days before an investment summit in the US.
Does the New York Times want to cause trouble for the administration of US President Donald Trump, or to “remind” Chinese investors of being cautious when it comes to making investments in the US? Cao asked.
Cao told the media previously that operating costs in the US such as land and logistics are much lower than in China. That comment sparked discussion about whether China might not only lose its advantages in manufacturing to Southeast Asian countries, but also to developed countries such as the US.
“China mainly produces low- and medium- end products, but the US mostly makes advanced products, which are diff erent,” Feng Liguo, an expert with the Beijing- based China Enterprise Confederation, told the Global Times on Tuesday.
Feng noted that Chinese investors are attracted by the large US market, but China still has advantages in overall costs, as well as innovation capability.
Feng believes that the Chinese government encourages domestic companies to develop overseas, and the policy will not change just because some Chinese companies face difficulties in their global expansion process.
Fuyao’s profit was 3.14 billion yuan ($ 460 million) in 2016, up 20.7 percent yearon- year, according to the listed company’ s financial report.