GM Learns the Hard Way About Communism

Sales in the People’s Republic of China by the biggest American automaker enter a ‘death spiral.’

China Photos/Getty Images
General Motors' vice chairman, Bob Lutz, at the launch of Chevrolet Aveo sedan, April 19, 2005 at Shanghai. China Photos/Getty Images

The collapse of General Motors’ fortunes in Communist China is coming into focus as a marker of America’s dysfunctional relationship with the People’s Republic. GM is learning the hard way about the perils of doing business with the comrades at Beijing. What were American lawmakers and corporations thinking, though, when they set out to strengthen trade ties with the communists, even granting them “most favored nation” status? 

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