Motorola joins the growing queue of western technology firms that
are looking to invest in Chinese companies — and struggling to spend
their money.

moto_cr.jpgYesterday, Motorola Ventures, its corporate venturing arm, made its debut at the China Hi-Tech Fair in Schenzhen in an attempt to redouble efforts to find suitable domestic companies for investment.

Since
making its first investment in China three years ago, the telecoms
equipment giant has only made a total of six investments. It didn't
disclose their size, so one can only assume the amounts involved are
modest.

Ruey Bin Kao, president of Motorola (China) Electronics
told Xinhua that potential targets for investment do not meet
Motorola's standards for “transparent risk evaluation”.

I can
understand that for a publicly-quoted US company investing in small
private Chinese businesses is risky, particularly in these days of
Sarbanes-Oxley. But if you want to be a venture capitalist, risk comes
with the territory, I would have thought.

It's interesting that
the stock exchanges of the west apparently have less scruples about
letting private investors invest in risky Chinese startups, judging by
the number that have floated in recent years.

For more on Motorola in China see this EngagingChina post. More on Chinese small companies that IPO in the west in this EngagingChina post.

Website for the China Hi-Tech Fair here.

Technorati : , , ,

email