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Chinese Firm Buys Alma Lasers

Monday June 10 2013

Last week we reported a Chinese firm bought the prestige British Yacht Maker Sunseeker.

Now another Chinese firm is buying the Israeli medical and cosmetic laser firm Alma Laser.

Why are the Chinese doing this?  Answer to diversify into high tech medical and to buy the technology.

Why does this make sense?  The Chinese will soon experience a huge drop in their labor force die to

their one child policy, ie, couples have not produced the requisite population replacement of 2.1 births per family. Their labor force is likely to shrink by 50 million over the next decade and there is  nothing to be done about it. Switching from mass manufacturing to high tech will require fewer workers which is what they will have.

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3 responses to “Chinese Firm Buys Alma Lasers”

  1. cary kingsley Avatar
    cary kingsley

    Also it is my opinion that they are putting their money to work. For the past few decades they have invested heavily in China first programs. Including but not limited to: Infrastructure, Manufacturing. However the term “Ghost City” is starting to be a ‘known’ term which indicates they lack the incentive to invest in China itself. What improvements they could make will only be outlays of capital with little or no return on investment. Why run a four lane highway through a region which is nothing but small towns centered on rice growing at the small farm level. So what to do with the excess capital? Improve air quality? of course not that has a little or no quick return. Invest in modernization of the rest of China (see above) again no quick return. Or buy existing high tech firms (I can assure you sunseeker was a leader in using tech to improve their ships). Not only do these investments offer quick returns it also infuses a techbase that previously was reserved for their military.

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  2. Dennis Elam Avatar
    Dennis Elam

    I hope other students are reading Cary’s insights!

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  3. John Avatar
    John

    Chinese are doing, what Japanese did when they started growing and become prosperous. Remember the famous buyout of Columbia studios by Sony and then subsequent other big ticket buyouts.
    I think this trend will continue, as Asia will get richer and grow, they are going to get ambitious and buy businesses all over the world.

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