Gross's discussion of the massive overseas operations by "US corporations" whereing both the producers and the consumers are in the same foreign country - China being the focus of this arrangement - reminded me of a familiar old model: colonialism.

When the European countries colonized various African and Asian countries, it was not the government but rather stock companies (corporations) that had the vested interest in these colonies. It may have worked for long periods then because the European nations were much more militarily powerful than the client states. When we consider our current relationship with China, it isn't obvious that this military advantage is as great (we can't after all, seem to subdue a cohort in Afghanistan, where the big sport is playing a version of polo with a headless sheep, and the primary transport seems to be mules) and we should anticipate that the Chinese will not let us get away with it for long.

Incidentally, the reason that US corporations is in quotes above is that although they are nominally chartered in this country, the owners can be anywhere in the world - including China of course. It might be that the Chinese will take the reasonable and peaceful tack and just buy control of those companies and re-charter them in China.