Mitt Romney invested millions of dollars in a Chinese firm that was promoting itself as an overseas destination for outsourcing, according to a report by David Corn.
The investment was made in 1998 by Brookside Capital Partners Fund, an affiliate of Bain Capital. Brookside invested in manufacturer Global-Tech Appliance, which is headquartered in Hong Kong. In September of that year, Global-Tech issued a press release announcing it was slowing expansion because Sunbeam was not outsourcing as quickly as possible, but expressing hope that outsourcing would soon pick up again. The company manufactured products for†Hamilton Beach, Mr. Coffee, Proctor-Silex, Revlon, and Vidal Sassoon.
Romney has claimed that he left Bain Capital in 1999, though Thursday the Boston Globe reported that Romney remained CEO through 2002. Romney has attempted to distance himself from some of the most controversial decisions made by Bain by claiming they were made after his departure. The investment in Global-Tech, however, clearly came during the time Romney was fully in charge of Bain, and fully engaged in decision making.
At its peak, Brookside controlled about 9 percent of Global-Tech. It’s unclear how much money Bain ultimately earned on its investment, but it’s clear that Romney had no problem investing in a company that was moving jobs out of America and into China.
China has been a frequent target of Romney’s ire on the campaign trail. Romney has assailed the Obama administration for not taking a tough-enough stance in Sino-American relations. But like so many other things, Romney was in favor of a good relationship with China — and profiting from it †– before he was against it.
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