The question is whether Qantas and Jetstar run the risk of handing China Eastern the know-how to set up a low-cost airline, only to find their Chinese partners replicating the model on their own on the mainland.
GM's experience here is instructive:
China to GM: Give us Chevy Volt secrets or it'll cost $19,000 more
The Chinese government is refusing to let the Volt qualify for subsidies totaling up to $19,300 a car unless G.M. agrees to transfer the engineering secrets for one of the Volt's three main technologies to a joint venture in China with a Chinese automaker, G.M. officials said. Some international trade experts said China would risk violating World Trade Organization rules if it imposed that requirement.
How about BMW:
China Puts The Screws To BMW
..It's not a law, but every car manufacturer that wants to build cars in China has been given to understand in closed-door talks that it must share "New Energy Vehicle" technologies with Chinese partners. The deadline is 2015. Car manufacturers have responded by offering to create China-only brands. VW already has decided on the brand Kaili, Daimler is following suit, and now BMW can no longer drag its heels.
Its all about technology transfer, the Chinese aren't stupid.
All warfare is based on deception
-- Suz Tzu