GE: General Electric is understandably sensitive about the reported private comments of its chief executive. And Jeffrey Immelt might regret saying that China is self-interested and that President Barack Obama isn’t business-friendly. But Immelt should not forget that both Beijing and Washington have good reasons for their policies.
“I really worry about China, I am not sure that in the end they want any of us to win, or any of us to be successful,” the Financial Times reported Immelt saying at a private event in Italy. The “us” refers to foreign companies. As for the current administration, he was reported to have blamed Obama for a “terrible” national mood and suggested that governments and entrepreneurs are “not in sync”.
The company issued an emollient statement, but people familiar with GE’s thinking did not dispute the thrust of the FT report, only some details and context.
Immelt’s words are unlikely to bother the decision makers in China much. As far as foreign companies go, GE has a good reputation left over from former boss Jack Welch. Besides, the People’s Republic is pragmatic. Help from foreign companies is required to help the country become rich and powerful, but Immelt and his peers aren’t supposed to be content. As China gets richer, foreigners are likely to get more unhappy.
Some other business leaders might regret any soft-pedalling on the American situation. They would like the president to tone down his anti-business rhetoric and reflexes. But with or without apologies, such comments will only strengthen the belief of Obama and other US politicians that businessmen do not understand political reality. The American big business establishment, including GE, has deeply alienated many voters.
That judgement may not be fair or balanced, but businessmen need to show they are not a bunch of self-serving job cutters. It can be done. Immelt-style complaints from Australian mining executives just helped overthrow a government which thought they were an easy target.
Immelt has told some hard half-truths. And while truth often hurts, the distortions that come from seeing only one side of the story can be much more dangerous.
