Fuyao labor dispute in US a valuable lesson

The Fuyao Auto Glass America, a good example of Chinese enterprises' efforts to promote globalization, recently came under exaggerated media glare for an ordinary labor dispute in its newly established plant in Ohio. Not only did The New York Times publish a big story on the dispute, but also some domestic media outlets covered it extensively.

The reaction of domestic media outlets is understandable, because many of them have misinterpreted Fuyao's investment in Ohio. When Cao Dewang, chairman of Fuyao, decided to invest $600 million in the Ohio plant days after he complained the heavy tax burden in China, one of the striking comments in the Chinese media was, "Old Cao wants to run away". And after media reported the labor dispute, many said that those who "run away" have to face trouble.

What people have apparently forgotten is that while explaining his decision to invest in Ohio, Cao had also said the glass made there would be sold in the Midwest states of the United States. Even the General Motors' global policy is: "We make where we sell." And GM and Ford manufacture in China the vehicles they sell in the country. Fuyao is just following this economic rule.