Coke CEO Says It’s Easier to do Business with Communist China Than With U.S.
- Posted on September 29, 2011 at 4:23pm by
Becket Adams
- Print »
- Email »
Coca-Cola CEO Muhtar Kent thinks U.S. corporations are at a disadvantage compared to those based elsewhere thanks to America’s labyrinthine tax code, he told the Financial Times in an interview published earlier this week.
“I believe the U.S. owes itself to create a 21st-century tax policy,” Kent said.
His biggest issue? The tax on repatriated earnings, which he says forces U.S.-based companies—unlike those based in other countries—to pay “a very large tax burden” on money earned overseas and brought back to the US, reports a recent Newser article.
He said that “in many respects” it is now easier to do business in places like China, where “local governments are fighting for investments with each other.”
In the West, he said, “we’re forgetting what really worked 20 years ago.”
He also added that Coke was still hiring in the U.S. and had invested $10 billion here over the past two and a half years.
“There aren’t many companies in the United States that are investing and hiring. We’re one of them,” he said.
Other executives in charge of the American market for Chinese companies ZTE and Air China agreed. They recently met with U.S. Trade Representative Charlene Barshefsky and other international business consultants to discuss conducting business in America.
“It is getting easier and easier to do business in China as the country is becoming more and more open to business,” said Chi Zhihang, vice-president and general manager of North American operations for Air China, China’s national flag carrier of civil aviation.
“I think the US has the tendency of becoming less and less open to business,” he said in a recent China Daily USA report.
If ever there was an argument against the current U.S. tax code, it is the fact that even the Communist Chinese think that it has made the U.S. anti-business.
Watch the FOX Market Rally Report:
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 676 Comments
‘Jumah at the DNC’ Speaker: ‘Muslims Visited America Prior to Columbus’ & ‘It Was a Muslim’ Who Guided Him to the ‘New World’ 527 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 398 Comments
Obama: RNC Like Watching ‘Black-and-White TV’ Because Romney ‘Did Not Offer a Single New Idea’ 371 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 328 Comments
Faith
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 264 Comments- Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More
- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 274 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
President Obama Issues Major ‘Green Energy’ Executive Order 146 Comments- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 147 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 300 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 264 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (60)
rfycom
Posted on September 30, 2011 at 8:03amYou know it just might be, but our country has gotten so polarized you have to ask if this guy is a republican or a democrat. As the International Man of Intrigue for East Tennessee, I can tell you have a hell of a time selling my handmade rocking chairs outside the US. All these withholding taxes, and import fees, and it goes on and on. Sure selling sugar water might be different, but my guess is there’s a little bit of politics at play here.
Report Post »CalvinDK
Posted on September 30, 2011 at 1:01pmLet’s assume this man is a conservative as conservative can be. Does that automatically make what he is saying incorrect? Have you ever heard a liberal not preaching higher taxes and more spending? Based on your logic should we assume anything and everything coming from a liberal is nothing but political and hold no truth? Aside from all that, this man is not saying anything that is not known. By those that pay attention anyway. India has 410 million middle class citizens. China has even more. They have more middle class than we have people. Year after year buying power is increasing overseas. Year after year businesses are popping up in once despotic nations. Our answer to this challenge is to make doing business here more expensive with more taxation. Were i China and India, hell Iran, Pakistahn, and New Guinea for that matter, I would PAY businesses to come to my country and not charge them one dime of taxes just for the simple fact the US charges them millions. And for what? Wellfare? I live in Tennessee. I’ll bet you one copy of the constitution it is easier to open a business in China than it is in Nashville. Probably less expensive as well. Yeah, the Government might end up owning it. But at least they are honest about it, instead of ownership through taxation.
Report Post »AzCowboy
Posted on September 30, 2011 at 7:09amDon’t take me wrong, Coke is a great company to work for. I started working in the soft drink buisness in 1972 and did it for 30 yrs. I have made Coke, 7up, Dr. Pepper, Pepsi even NeHi(sp. I don’t remember) if ya remember that one. Problem with the beverage industry. When I started there were 1000′s of little plants across the U.S.. Employed lots of people. Now there are only 100′s due to automated Mega plants. It took machines made by many american companies to supply these little plants. Plenty of work for all (unions included). We need to backstep a little and create american jobs. Coke, please help us.
Report Post »jH…
Contrarian51
Posted on September 30, 2011 at 5:45pmSo Coke (or any other company) should deliberately strive to not maximize profits? They should take a pass on advances in technology and innovation and automation? They have no obligation to the stockholders? Of course, to remain competitive, Dr. Pepper/Snapple, Pepsi, Jones Soda and all the rest would also have to agree to do the same. There’s something about free markets that make this unworkable, comrade.
Report Post »stillfreeinidaho
Posted on September 30, 2011 at 12:32amWOW, one of warren buffets pet companies speaking out against big brother. say hi to jimmy hoffa……….sr.
Report Post »TheePolitinator
Posted on September 29, 2011 at 11:49pmDer…. please, tell us something we DON’T know…. They are pushing for China to be the “new world currency”. Get out your lube folks, you think prices are high now wait till the Asians start collecting on Oblahblahs debt.
Report Post »manster35
Posted on September 29, 2011 at 10:33pmCoke, Ford, who else is this government going to make life and the ability to do business impossible for. Who. We must get these democrats and Barry the America Hating President, voted out of office. They have to be voted out.
Report Post »mrsmileyface
Posted on September 29, 2011 at 10:11pmOval Office executive order……From the Desk of the President of the United States of America…….Please be advised that all government agencys will now start serving Pepsi Cola in ALL of its commisarys and break rooms starting 9/30/2011. All future meeting will also be switching to Pepsi Cola as of the aforementioned date. Thank you for your coperation.
Report Post »SHOWMESTATEGUY
Posted on September 29, 2011 at 9:51pmKent, you shall feel the wrath of the BO lib army. Don‘t you know that you don’t speak ill of the kind leader. Hey, can anyone say Iran? Or Cuba? Or……………………….
Report Post »preppymom
Posted on September 29, 2011 at 9:17pmI’ve heard that it is much easier to deal with the Chinese government. You give your bribes once a year and your good.
Hope I‘m not blacklisted for the Bill and Hillary’s love story: http://www.crackingthemalecode.com/
Report Post »Unfair, Unbalanced but amazingly accurate
Secessionista
Posted on September 29, 2011 at 9:06pmYour future and your wealth is being stolen, America!!!!!
So is your childrens’.
Report Post »Secessionista
Posted on September 29, 2011 at 8:59pmThe average chinese wage is about 60% of the average american wage. This may sound like a large difference, but it is not. Just 20 years ago, the average chinese made about 20 cents a day.
America has fallen a very very long way down the food chain, and it is all because of our government. They are the ones who demanded NAFTA and free world trade, they are the ones selling US treausries to the holders of repatriated dollars. They are the ones with their boots on our neck. We are just their puppets now.
Report Post »Rowwdy
Posted on October 1, 2011 at 11:18amChinese workers are lucky to make .16 cents an hour in the sweatshops. They also force young teens into work. Chinese don’t even come close to making 60% of American wages.
ANY U.S. company that is so greedy to have their products made under, what is basically, slave labor should be boycotted. However, Americans are too stupid and too lazy to look for American made products. They just keep flowing to stores like Wal Mart who has nothing, but Chinese made crap….INFERIOR crap.
But then corporate gree is right up there with union greed. Unions have helped destroy our manufacturing base.
Report Post »roadhog
Posted on September 29, 2011 at 8:48pmIts easier to do Cusiness in Moscow than New York.
Report Post »USA-CONSERVATIVE
Posted on September 29, 2011 at 8:37pmTime for Muhtar to pack his bag’s!
Report Post »Contrarian51
Posted on September 30, 2011 at 5:54pmPack his “bag’s” what? You used the possessive “bag’s” and in something belonging to or being part of the bag. Or did you mean he should pack his bags, as in leave the country? The man experiences what he experiences, says something about it, you don’t like it so he should be kicked out of the country. Got it.
Now, when you call me an idiot, remember it’s “you’re” an idiot, not “your” an idiot.
Report Post »Just South Of Heaven
Posted on September 29, 2011 at 8:30pmKind of obvious with this administration! They wish to destroy it to rebuild it to the way they want.
Report Post »Squ33
Posted on September 29, 2011 at 9:33pmHow many times does history have to repeat itself before people understand that Progressive taxes hurt the country in which the taxes originate. The Obama Administration, as well as Congress, need a lesson in Free Market economics from the late Milton Friedman and the very late Adam Smith!
Report Post »NewAmericanist
Posted on September 30, 2011 at 6:41amIt’s not just the administration…
It’s time to fight hard to remove the cancer we have in the Senate. 2012 cannot just be about Obama. Like Newt & Bachman are known for saying, this election MUST be about filibuster proof majorities. Whoever we nominate for the next President must be an active leader in getting the senate majority re-aligned & increasing majority in the house. This is the only possible way to get:
Report Post »Obama care repealed
A flatter, more competitive tax system
A balanced budget amendment
Real entitlement reform
bankerpapaw
Posted on September 29, 2011 at 8:09pmWatch out, Mr. Kent. Obama’s thugs will be kicking down your door and shuting you down.
Report Post »machine1600
Posted on September 29, 2011 at 8:09pmGet out of your big mansion on the river and move to fn china bitch
Report Post »Contrarian51
Posted on September 30, 2011 at 5:49pmYou want him deported for telling it like he sees it? Nice. How American of you.
Report Post »bankerpapaw
Posted on September 29, 2011 at 8:08pmYou better watch out, Mr. Kent. Obama’s thugs will be coming to shut you down.
Report Post »ZengaPA65
Posted on September 29, 2011 at 7:16pmIs it really easier to do business with a government that allows painting kids toys with lead paint? Whodathunk!
Report Post »proantisocialist
Posted on September 29, 2011 at 7:25pmi think it is easier to deal with a goverment that kills problem employees and or citizens.
brought to you by (cmdv) chinese mobile death vehicals
Report Post »We are Americans
Posted on September 29, 2011 at 8:17pmIt’s so much easier and cheaper when
Report Post »you can import peasants from the farms
and pay them a bowl of rice a day.
Lower taxes and lower pay would make
the USA much more competitive. No human
rights would be helpful too.
EqualJustice
Posted on September 29, 2011 at 7:15pmWhy THANK YOU Mr. President! I don’t care because IF I do drink a soda.. it’s PEPSI. I live in an apple producing state (well not so much any longer) and the local apple juice is made with apples from Paraguay and Uraguay and Chile and anywhere else but the USA! Imagine that it is cheaper to import than grow in your own back yard? They don’t play by the same rules that WE must adhere to, so how do you know they are NOT using chemicals and things that are banned here? Who’s watching as they URINATE in the fields on the SAME fruit and veggies WE WILL EAT? NO ONE.
Report Post »From Virginia
Posted on January 15, 2012 at 5:47pmYou can thank NAFTA and CAFTA for that. It’s perfectly legal for those countries to sue us for undercutting them in any manner of production – and they have. Our roads will now be less safe because their truckers – who follow NONE of our safty rules – will be causing mayhem on our roads.
Everything government has done to interfer with business has killed it. There has GOT to be some happy medium between companies operating unsafe/dirty/dishonest businesses and a truly free market that the government doesn’t stick their corrupt fingers in to interfer with it.
Report Post »kickagrandma
Posted on September 29, 2011 at 7:08pmIt’s easier and cheaper (so far) to drink pure ole water than to do business with Coca Cola since they’ve decided to sell us out, just like Levi did. And pepsi???/ What‘s with the noman’s logo and yours? If I hadn’t already stopped drinking pepsi years ago, I would have over the logo issue. Every time I see a pepsi logo, I want to spit.
So, toodle-oo, Coca -Cola. You’ve been my drug of choice for over 50 years. Laying you down and walking away. Shame on you!
Report Post »WeekendAtBernankes
Posted on September 29, 2011 at 7:18pmLadies and Gentlemen, we have a winner.
(Of the most poorly thought out comment award.)
Report Post »Delicaterose65
Posted on September 29, 2011 at 7:23pmCongrats Grandma..I am with you!! But I quit drinking soda years ago. Water is much better for you anyway. ~ God Bless ~ and Peace Be With You !!
Report Post »Magyar
Posted on September 29, 2011 at 9:32pmGrandma— Get a hold of yourself–are you sure the only thing you‘ve been drinking is ’pure ole water’? How many jobs will be lost? Dare to think outside your little box!
Report Post »Casca1
Posted on September 29, 2011 at 11:52pmWell, duh. This administration is anti-corporations, declaring them eeeevil. The US has the 2nd highest corporate tax in the world. I don’t blame business ONE bit for moving out of the US or outsourcing to other countries. It’s not their fault, they exist to make a profit.
Report Post »MrButcher
Posted on September 29, 2011 at 6:56pmThis is why Obama will lose in 2012.
Just think, here we are 20 years after the collapse of the Soviet Union and the Warsaw Pact and the United States is now less friendly to business than China! Amazing!
If we don‘t change command of the ship of state then we’ll end up like the Soviet Union; balkinized and broke
Report Post »jhaydeng
Posted on September 29, 2011 at 7:09pmWhy does Coke use Red and White? Santa Claus? Valentines Day? We’ve been duped!!!!!!!
Report Post »MrButcher
Posted on September 29, 2011 at 7:47pmIf they added black to their color palette you could then call them Nazis, right?
Report Post »Contrarian51
Posted on September 30, 2011 at 6:02pmIt’s business. It’s not about red and white, it’s about green. I’m amazed at how many people posting on this website, most of who claim to be conservative, suddenly are up in arms because a businessman has the gall to say our government is making it tough to do business here. Free markets and free speech, folks. If you don’t like businesses expanding overseas, maybe you need to get after our own government about the environment they’ve created here and the incentives that exist to move over there.
Report Post »mad_hatter
Posted on September 29, 2011 at 6:51pmThis COKE CEO also said some interesting things. He said that the US needs to revamp their tax code and that the US pays to much in taxes compared to other countries. the taxes are harder to abide by and keep up with. ( http://tiny.cc/25hp2 )
Report Post »EqualJustice
Posted on September 29, 2011 at 11:18pmYou do have a point. We need to KEEP as many companies as we can here in the USA. It’s just another cry for LESS government intervention and LESS regulations! (I still like Pepsi better)
Report Post »Dalady
Posted on September 30, 2011 at 1:22amMaybe Coke should revamp their recipe.
Report Post »From Virginia
Posted on January 15, 2012 at 6:02pm@Dalady – Nah – I can’t stand pepsi! Too sweet and no bite. There are coke people and pepsi people. Just like there are mayo people and miracle whip people.
Report Post »gbrittain
Posted on September 29, 2011 at 6:50pmDear Mr. Muhtar:
First, you should do everything possible to elect more business friendly candidates in 2012.
Second, you should realize that the government run school system, K-12 and universities, and trying to indoctrinate the next generation to think like Obama. Winning the next generation is as important for the long run of your and every business as winning the 2012 election.
Third, you cannot appease the secular progressive Dems. Supporting the Dems, at least most of them, is like what Lenin said, the capitalists will sell us the rope we use to hang them.
Report Post »jcizarter
Posted on September 30, 2011 at 8:58amYou are so correct, get all children out of Public schools, then our taxes will go down and these dens of indoctrination will fold. It takes drastic measures to get what is good for our kids…
Report Post »mad_hatter
Posted on September 29, 2011 at 6:48pmSure, that is why you have to hand over your intellectual property/technology in order to build in some of their industries and get stimulus from them. Did you hear that GM is going over there and handing over, with GE, their electric car technology which was paid for thanks to US taxpayers funding. So Government Motors(GM) and Government Electric(GE) are being bailed out by China and allowed to build over there if they pass over their technology so that China in the long run can steal the technology like they do all the time. ( http://tiny.cc/l5s3r )
Report Post »KangarooJack
Posted on September 29, 2011 at 6:42pmIt costs less money to ship Hay across Oceans than it does to truck it 50 miles down the road in the United States. Who can blame Coke for being Honest???
Report Post »BowHuntingTexas
Posted on September 29, 2011 at 7:19pmYup. Mean ‘ol Coke – taking their corporate business to the most restrictive free business environment.
Just Awful.
How much are members of the UAW getting paid to watch a car get automatically put together?
Report Post »RamboTheDog
Posted on September 29, 2011 at 6:41pmWhoppee – can’t wait to get the tainted Coca-Cola soda made in China.
Report Post »