Thursday, June 30, 2011

Which side does Giant Interactive Group favor

 
Giant Interactive Group Inc (GA 巨人网络) collaborated with People's Liberation Army to make a video game (光荣使命 which means Honorable Task) for PLA soldiers as a training platform. The assumed enemy is, you guessed right, America. How can an American investors owned company (GA) to be so anti-American. The worst case is that new video game will help kill American soldiers. That is a big no-no. Dear American investors, wake up. Ask yourself, do you have any control in the company?

Screenshot of Honorable Task

This is the first time such a product was ever introduced in China. The collaboration between Giant Interactive Group and PLA dated back to 2008. See report here.

GA IPO price was $15.5.  It now trades at about 50% of its IPO price. GA claims to be profitable but the Chinese government still subsidized GA. Between 2009 and 20110603, GA collected 156 M RMB from the Chinese government, according to published financial data.

No wonder GA helps PLA.





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