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Romney Invested in Chinese Company, Outsourcing

Romney Invested in Chinese Company, Outsourcing

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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46 comments

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11:56AM PDT on Jul 16, 2012

No, it's not outsourcing when Rommey and his ilk do it, it's called "offshoring."

1:30PM PDT on Jul 15, 2012

hmmm...

9:15AM PDT on Jul 15, 2012

Mr. Romney has taken as cover that he had left Bain, which in light of the SEC filings has become "was on leave". Either instance was meant to distance himself from the outsourcing of jobs. This absence of course was to be the CEO of the Olympic committee.

When asked on the national evening news what he thought about outsourcing of the Olympic uniforms to off shore manufactures he declined to take a position in support of American manufacturing, and instead took cover in "no comment".

Now it turns out that the philosophy of outsourcing was not something that his peers in Bain simply did while he was "on leave" , but rather as CEO of the 2002 Olympics he outsourced those uniforms as well. THATS WHY "NO COMMENT"

8:30AM PDT on Jul 15, 2012

Romney was never credible.

9:59PM PDT on Jul 14, 2012

Michele H., Walter G., Steve R.................All rude and disrespectful........Very sad when a Canadian knows more of the truths than you do........Perhaps one of you mental giants (and I use that term loosely) should educate yourselves and give the Presidency a run. You're well on your way with your far right idiology. (Too big a word?) try baloney.

9:41PM PDT on Jul 14, 2012

@Bruce K. [http://articles.businessinsider.com/2012-02-24/home/31094025_1_jeff-immelt-ksu-handouts#ixzz20etM8Aeq]

Upon investigating the contents of the article and performing a moments research,
it is found that the The railroad lending program was part of the
TEA-21 - Transportation Equity Act for the 21st Century from sometime back in 1998
http://www.fra.dot.gov/rpd/freight/1770.shtml and has nothing to do with any action of the current administration.



As to "Jeff Immelt" of GE, it is true that president Obama extended a bipartisan hand to take Jeff (a republican) on board as an economic adviser.

It is also true that Jeff Immelt (republican) decided to off-shore the X-Ray division to China

"Back when he agreed to advise the Obama administration on economics, General Electric CEO Jeff Immelt told friends that he thought it would be good for GE and good for the country,” Gasparino writes in the New York Post. “A life-long Republican, Immelt said he believed he could at the very least moderate the president’s distinctly anti-business instincts.”

And although GE has greatly benefited from its relationship with the U.S. government, gorging itself at the federal subsidies trough, Immelt is apparently dismayed that he can’t “fix” the president’s anti-business stance.

8:34PM PDT on Jul 14, 2012

GE announced moving their X-ray Division to China along with thousands of jobs of interest might be this in regard to Obama:

AP

GE pays next to no taxes in the US, they haven’t for years. But when it comes to government money, they are on the top of the list for handouts. There is only one reason that GE keeps sucking on the country’s teat, the CEO is best buds with Obama. Not only are they pals, but GE’s top honcho, Jeff Immelt, is advising the President on what to do

Read more: http://articles.businessinsider.com/2012-02-24/home/31094025_1_jeff-immelt-ksu-handouts#ixzz20etM8Aeq

8:10PM PDT on Jul 14, 2012

@Pat L. Did you happen to notice if the 23 cents on the dollar occurred via bankruptcy proceedings , and/or was it via the PGC (Pension Guarantee Corporation)

There was a huge corporate fad for a time that had nearly every major legal firm with a department dedicated to helping corporations wriggle out of pension plans that had been offered in lue of wage increases. This deliberate corporate raiding of pensions nearly bankrupt the PGC.

7:36PM PDT on Jul 14, 2012

@Steve R. Here is but one of your distortions dismantled (repeated from another thread)
----------------------------------------------------------------------------------------
@Steve R.

Actually, the first round of government loans to Fisker Automotive went toward design, engineering, sales and marketing work with such work done right here in the United States.

While it is true that the cars it has built thus far were made in Finland, the republican half-truth machine fails to mention that the 2nd round of funding has gone for development of a second, less-costly line of cars that the company is setting up to build in a shuttered GM facility in Delaware (United States).

Read more: http://www.care2.com/causes/the-no-more-solyndras-act.html#ixzz20eei0Eqk

7:24PM PDT on Jul 14, 2012

@Steve R. Having taken the time to dismantle at least one of your claims , and then having you continue to copy-paste your deceptive material , your credibility is bankrupt here.

In your "attempt" to make President Obama out to be as bad as Mitt Romney , you take a circuitous Rube Goldberg path hop scotching through government agencies , their actions in lending and then the actions of third parties to make a tenuous connection, then once arriving there distort the facts like play-doh to remake reality such that substantial truth actually remains.

Mitt Romney on the other hand had direct and specific control of the off-shoring activities he's associated with.

If the remainder of your material is of the same quality , you should quit while your behind.

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