Stalker has read this month of an industrial scam that happens in China, according to French intelligence services, which has been dubbed the “mushroom factory”.
What happens is a foreign company creates a joint venture with a local Chinese firm and transfers part of their technology. Later “local rivals emerge offering identical products and are run by the Chinese head of the company that initiated the joint venture.”
Sounds like something to watch out for if one is setting up business in the East.
Looks like French giant car company Renault was caught out by a similar technique or other in dealings in China.
