Chinese company buys nearly $4-billion stake in Western Digital – LA Times

Western Digital WD740GD Raptor - 10,000 rpm - ...

Western Digital WD740GD Raptor – 10,000 rpm – 74 GB (Photo credit: Wikipedia)

According to the LA Times, a unit of China’s Tsinghua Unigroup Ltd. agreed to pay $3.78 billion for a 15% stake in Western Digital Corp., an Irvine-based maker of data-storage disk drives.

Source: Chinese company buys nearly $4-billion stake in Western Digital – LA Times

Along with news that China has beaten Japan to win a contract for Indonesia’s high-speed railway, the alarm bells should start ringing. There are still too many people in Western businesses who think China is heading for a hard landing, so there’s no strategic threat – end of problem – that’s an enormous mistake.

Thoughts?