China likes to buy other countries' companies, but it does not like foreign companies buying its companies.
Way back in October of 2005, the Carlyle
Group wanted to pay $375 million for an 85% stake in Xugong Construction Machinery, the largest construction machinery company in China. The Chinese government didn't approve of foreign investment in Chinese
companies, so Carlyle cut its stake to 50% in
2006 and then to 45% in 2007.
Today, Carlyle is throwing in the towel and walking away from the deal.
