While the US State Department was downgrading the status of Lenovo computers, Goldman Sachs and a partner were completing the purchase of a major stake in China's biggest meat processor.
Hong Kong-based Rotary Vortex, 51 per cent owned by Goldman Sachs and 49 per cent by CDH Investment, paid 2.01 billion yuan for a 25 per cent stake in Shineway, based in Luohe city , Henan . The deal was widely criticised in China - but not blocked by the government - because Goldman also holds more than 10 per cent on its own or on behalf of clients in China Yurun Food Group, the No2 meat processor and Shineway's biggest rival.
An original condition of the purchase was that the bidder could not be a major shareholder of a rival in the same industry. This was a major issue in the talks, but Goldman and its partner appeared to have solved it. The vendor was a unit of the Luohe city government.
'Multinational companies are using the reputation of Fortune 500 and good PR to acquire cheaply our major companies, with good quality assets, exclusive brands and key technologies,' said Gao Liang, director of the State Asset Research Centre at the State Development and Reform Commission. 'Their aim is to push out the Chinese partner, eliminate rivals, monopolise our market and prevent China's technological progress.'
The deal's critics said Goldman and its partner paid too little - Shineway's annual sales were 20 billion yuan and it values its own brand at more than 10 billion yuan.
Li Deshui , former commissioner of the National Bureau of Statistics, said multinationals had gained control of many of China's leading companies, with the aim of taking over or abolishing their brands. 'If we do not take action quickly, China's national brands will gradually disappear,' he said.