The BP CEO is removing himself from a big oil board in Russia where BP has a huge investment. How are they going to sell that investment now!
Companies have been salivating to build in China for over 30 years. They have been drawn in by the low cost structure of the Chinese economy. Lower cost of production means higher gross profits.
China has many similarities with Russia. Now, if China were to expropriate facilities that foreign companies built in China, all the savings of thirty years of cheap production sources might well be eclipsed by the taking of the facilities owned by non-Chinese entities.
Russia's recent activities should be a wakeup call to those doing a lot of business in China. Remember, like the roach motel commercial for Raid "They can get in, but they can't get out!"
Be smart, be well-read, be aware and be successful.
