China 2007 Blog

My final reflection

2007-07-16T00:11:00.000-07:00

China is a country that took risks and has resources that are in high demand. China knows how to attract companies and motivate them to stay. There are many challenges that it will continue to face and it’s the companies that need to contribute to the efforts to solve the problems before they escalate. An issue that needs to be addressed more is the depletion of resources. Companies we met with are all taking steps towards sustainability. Whether it was creating charities, creating a better environment for its employees, or using environmentally friendly products they each had steps to fulfill its goals. I was very impressed by the immense support for increasing sustainability issues and the desire to curb the problem sooner rather than later. Throughout this program we were exposed to business plans and the avenues they followed, whether they had social responsibility or not. It remained verified that corporate social responsibility is a growing issue and those who focus on a higher level will have more long run success and more opportunities.

This trip was an experience that taught me about myself, China, and various corporate cultures. Each company taught me a lot about the business cultures, how they bring multiple backgrounds together, the tough roads they crossed, and how they achieved success. I was impressed by the risks employees took and the way so many cultures could unite for the same purpose.

The best experience was seeing how three companies intertwined. UNIC, NatureWorks, and Stream Source all worked together in the process of constructing RubberMaid Huggable Hangers with environmentally friendly products. They have a relationship that relies on support and dependability from the others. All three have different leadership and different backgrounds, yet they can take an idea and work together to make a successful product that became HSN’s biggest seller. They have a market lead in China, which is the result of trusting the other companies to fulfill their contributions.

This collaboration illustrated the business practice of trust. Their relationship was a result of encouragement and believing in each other. With a reliable power supply, a “one stop” logistics center, remaining motivated to stay ahead of business issues, and an idea, these three companies had conviction. Today many companies are reserved and try to fulfill all resources necessary in order to maintain complete control. Through these companies I see a common drive and a willingness to work together. Contracts in China are not twenty pages long, they are shorter and based on respect and trust, generating a long term relationship. People are not as skeptical of the partner not fulfilling their side of the deal because the culture is about keeping face and respecting each other. This is a practice American business needs to work harder to create.

During our Stream Source presentation, Alex was asked what the best advice for an expat in China is. His response was to take as many risks as possible, and to be able to drink. The latter was already expected since we read many Chinese business books prior to our arrival in China. The first part of his statement stuck with me. I have been told to take risk before but I have always been hesitant because with risk, most commonly comes many failures. He showed how his failures lead him to China, working with a company who is now the #1 closet organizer product and HSN’s biggest seller. I realized I was taking a risk by moving to China to learn Mandarin. I put my career on hold and was willing to move to a place I knew very little about. Everyone takes risks, but I am very risk averse, taking as little risks as possible. I dream of making a difference and fulfilling my definition of success. After this trip I see how risk is a determinant of accomplishment. I will venture out of my comfort zone in order to try new things and experience a life I would not have had I never taken a risk.

Not only was the actual relationship between the three businesses insightful, the background of James and Alex helped me in confirming my desire to return to China at the end of July to learn Mandarin. They have had an, overall, positive experience in China and doing business there. They love the culture, the attitude, and the opportunities. Alex said that in order to succeed in China you need two things: to take as much risk as you can, and to learn the language. These words will remain with me during my pursuit of opportunity in China. I am learning the language and with that come risk of me being in a foreign country and postponing my career in the US. More risks will come along my journey and I will think of Alex’s words every time I try to rationalize my decision in my head and ask myself if it could lead to the accomplishments of my dream, even a 1% chance is a chance that it will.

Firm information

2007-06-05T21:06:00.000-07:00

GUANGZHOU:

Zhongkai University of Agriculture and Technology
www.shku.edu.cn/english.html

Winglok Textile Factory
www.gzpyyl.cn

VTREK Audio and Video Products Factory
www.elec-vtrek.com

Vtrek Group makes up the sub-companies Guangzhou Panyu Juda Car Audio Equipment Co., Ltd. and Vtrek Electronics Co., Ltd. Their website is exceptional and above par in regards to other Chinese companies’ sites I have seen. The company sells a range of audio and video products. VTREK exports its products to Europe, Australia, Southeast Asia, South Africa, among other countries. Vtrek markets their high quality and innovativeness and “perfect service”.

As technology continues to grow will Vtrek expand its product line?

How do you define “perfect service” and how were you able to exhibit this in a society that has not embraced the service industry yet as well as the US has?

Pegasus Footwear Company Factory

Pegasus is a holding company involved in manufacturing and sales of footwear products and footwear materials. Most of their products are sold in the US. With 150 sales offices in China, they continue to have stable margins. Their products are made for Nike Vans, K-Swiss, L.L. Bean Bite, and Caterpillar. Pegasus also is involved in other investments and services.

Are there regulations set by the companies you manufacturer for and, if so, what do they entail?

There is much competition for manufacturing in China, how does Pegasus withhold the contracts currently had and obtain new ones?

MACAU:

Macao Polytechnic Institute
www.ipm.edu/mo/

MPI is a newer school but has grown into a modern teaching and research facility, encouraging participation in many conferences. Staying consistent with the area, MPI has a Tourism and Casino Career Center. There are 2700 full time students enrolled in degree programs with over 20,000 students attending professional training courses annually. MPI has worked hard to maintain academic links with universities around the world to accommodate collaboration and academic exchange, in addition to focusing on continuous improvement.

What is the average time it takes for a student to earn his/her degree?

How competitive is the application process? (students accepted v. who apply)

Which programs are growing fastest?
How do you motivate your staff?

What percentages of graduates find employment immediately upon matriculation?

Do you have partnerships with local industries, such as the gaming industry?

Macau University of Science and Technology

Macau University seems to be very interested in student exchange programs and cultural differences. They have agreements signed with many countries, I including the US, for education programs and welcome people from all over. They are encouraging students from Taiwan and Hong Kong to apply. MUST has different requirements for students from mainland China and Macau. It is interesting that they separate themselves when they are all one country. Their philosophy is , “Promoting Cultural Exchanges, Nurturing Intellectual Growth, Fostering Economic Development and Furthering Social Progress,” and I think that they are doing a good job promoting cultural differences and attempting to break barriers by exchange programs and educating.

Is there much competition between universities? How so?

Why do you think college students choose to attend your school?

How do you keep close ties with other universities? Is it not a competition like in the US?

Do you work with any corporations to incorporate their learning requirements into your curriculum?

How is the economic growth of Macao affecting the university (new casinos)?

Sands Casino
www.sands.com.mo/

Sands Macao is the first western operated gaming facility in the People’s Republic of China. They have gaming, dining and entertainment. Their features seem much like those of a casino in Vegas. Vegas is even mentioned on their site. Sands is based in the US and owns many other Casino/expos. It was the first western operated gaming and entertainment destination in China. Currently there are in construction with two other casinos in Macau.

Do you think a lot of the draw to the casino is people wanting to experience America?

What is the motivation behind the gamblers in the casino?

When people come to the casino do they participate in the activities other than their intentions or is it less “addicting” than in the US?

What are the main differences in running a hotel in China and Vegas?

What was it that attracted the Sands to China, and what risks were involved?

Wynn
www.wynnmacau.com/

Wynn Macau opened in September 2006, with 600 hotel rooms, 220 gaming tables, 380 slot machines, seven restaurants, a spa, a salon, and retail stores. Steve Wynn, Chairman and CEO of Mirage Resorts, was also responsible for the development of Bellagio, The Mirage, Treasure Island, and the Golden Nugget in Las Vegas, Nevada as well as the Atlantic City Golden Nugget in New Jersey and Beau Rivage in Mississippi.

Is hospitality and the service industry different in China than the U.S.?

What are the main differences in running a hotel in China and Vegas?

What was it that attracted the Sands to China, and what risks were involved?

How was the preparation and development of the Wynn Macau different from that of its U.S. cousins?

New Century Casino
www.newcenturyhotel-macau.com/

New Century Casino is gorgeous. They are decorated in European décor, targeting business travelers and international travels wanting a piece of home. They have a private transfer shuttle bus and serviced apartments. They are trying to differentiate themselves through their service and elegance image. They have different types of rooms, some with a family feel. I think this hotel will be very successful, catering to expatriates. One way that Companies entice Expatriates is through luxurious living to make them more comfortable and feel “closer to home” and this hotel is leveraging that demand.

How many long term guests to you have? It seems that this would be a good location for expatriates, being housed by corporations as part of their employment to come overseas.

What is the variance of your guests? (local, international, business, vacation)

Has there been a push by the Chinese towards increased customer service?

Is the casino and entertainment a major source of revenue in comparison to your guest room revenue?

Lisboa Casino/Hotel
www.hotelisboa.com/

Lisboa is an elegant hotel with 15 restaurants focuses in customer service. They have large rooms and huge business meeting areas. The service focus allows them an advantage due to the lack of this in China. For 40 years the owner had the city’s only gambling license until five years ago as Las Vegas tycoons decided to take over. In order to keep up, Ho, the owner, has announced enormous projects including the Grand Lisboa, a pair of huge real-estate/casino developments, and a giant theme park.

Why is it that, according to CLSA Asia-Pacific Markets, the average table in Macao earns three times more than a comparable table in Las Vegas?

How do you advertise to market your extensive business meeting rooms?

Are a majority of your guests local or international?

What shifts in the market are expected with the entrance of many trendy American casinos?

International Game Technology (IGT)
www.igt.com.au/

This Fortune 500 company designs, develops, and manufactures microprocessor based gaming products. It has more than 500,000 gaming machines located around the world. IGT’s global vision and willingness to deliver what customers want have given it the reputation as the world’s leading gaming machine maker. It is licensed to business in every legal gaming jurisdiction in the world, helping to grow their market share even more.

Is there a difference in the products between the U.S. and China?

Are there the same regulations?

What is the shift you see as more American casinos enter China?

SHENZHEN:

Wal Mart Global Procurement Center
www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=337

This center manages the company’s direct import business and factory direct purchasing. They have to find new suppliers, new products, build relationships, and manage their exports. In situations where an American manufacturer cannot cut costs any further, the Global Procurement Center steps in to find a foreign production facility for the American supplier, and the American company then switches from being a manufacturer to an importer. They are responsible for finding new trends. There is a supplier team who aligns WalMart with their suppliers. The business development team gets the products on the shelves. The Global Services team works to build a lean system and leverage capabilities. The Trade relations team develops relationships with government to support direct import sourcing. This, I think, is the most important division in China. Government support helps a company operate. Each part of the processes is inspected for quality assurance and is checked by an independent third party.

China is the largest growing and changing country, an ideal place for those concerned with the procurement environment. Because of this, China is attracting more and more transnational corporations. China has been the largest exporter to the U.S. and Wal-Mart is the leading retailer in the U.S. Wal-Mart strives in their diversity. This diversity allows them to operate in different countries, adapting to their culture, being their advocated, and serve and support them. Wal-Mart is attractive to suppliers for their ability to get their name in front of the world. Wal-Mart quotes the partnership beneficial with the following “First, the demand for their products creates jobs and improves the way of life in the communities where those suppliers operate. Then, as suppliers keep up with demand, we can provide quality products and services to our customers at the absolute lowest prices, which, in turn, improve their lives, too.”

Chinese are very price conscious and advertising is not popular, how do you inform the customers of deals?

What is the process for finding new trends, and what is the average success rate of the trends you identify?

Are relationships with suppliers better or worse with the implementation on this center?

Yantian Seaport and Logistics Center
www.ytport.com

This seaport is tremendous in size, being able to handle up to 500,000 containers in a month. The goods vary in destination and type, but the majority are Chinese manufactured goods on their way to the US. Being so busy, they must operate efficiently. They are the 6th largest seaport in the world, comparable to the Long Beach, CA port.

Is this port ever full and have a “wait” line?

How many people does it take to move cargo in and out efficiently?

Are their safety regulations while working at the port?

Do you work closely with the US and Chinese customs?

How are the laws and regulations different?

SHANGHAI:

Shanghai Urban Planning Exhibition Hall
www.supec.org/

The Shanghai Urban Planning Exhibition Hall displays the achievements of Shanghai in planning and construction. The building is huge, with 19 thousand square meters. The exhibits show the future of Shanghai. The main model of urban planning, which is in the proportion of 1:2000, exhibits the urban geography and scenery in an extent of a hundred and more square meters within the inner elevated ring road. It is the world’s biggest model of urban planning.

How are architects chosen?

Who decides the expansion of Shanghai?

Is there a concern for depletion of resources?

Are certain areas set aside for agriculture only?

Shanghai Museum
http://www.shanghaimuseum.net/

The museum was founded in 1952 and developed rapidly. They moved in 1992 because the Shanghai government allocated land in the middle of People’s Square.
They possess a collection of 120,000 precious works of art with collections of ancient Chinese bronze, ceramics, painting and calligraphy. It has eleven galleries and three special temporary exhibition halls. Inside there is a restaurant and tea room. Currently they have exhibitions of western art and art in America. “Its unique architectural form of a round top with a square base, symbolizing the ancient Chinese philosophy that the square earth is under the round sky, is a distinguished architectural combination of traditional feature and modern spirit.”

What is the most prized piece of artwork inside the museum?

How do the Chinese feel about the western art?

KPMG
www.kpmg.com.cn/

KPMG is one of the “big 4” international accounting firms. They just opened their 10th office in China. KPMG in China has ten offices in Beijing, Qingdao, Shanghai, Chengdu, Hangzhou, Fuzhou, Guangzhou, Shenzhen, Hong Kong and Macau. They were the first international accounting firm to be granted a joint venture license in China. Being early entrants, they have been able to focus on quality and industries. KPM has international experience, having seniors from Japan, US, UK, and Germany, who can help with local knowledge. They employee over 113,000 people around the world in 148 countries.

KPMG strives to provide accurate advice to meet the multinationals and their head office. KPMG helps their clients compete internationally?

Are there employees who are responsible for different national laws that assist multiple clients?

When companies first go international, how much time does it take to adapt to their laws and financial statement formats?

On your audits, do you mostly always do one following US GAAP to satisfy investors and future expansion potential?

It seems the Chinese are new with responsibility and accountability is a big part of your operations education?

How do you analyze the clients you want to take on?

In the US KPMG, we do not know international law; there are few that specialize in it. Is it more prevalent in China to be more familiar in both?

What is the certification process and what companies require what certification?

In the US KPMG, charity is a high priority and social responsibility. In China
public property plays a lesser importance, what is your extent of charitable
contributions?

How is it adjusting to different cultures in order to make them feel comfortable with you being their accountants?

Starbucks
www.starbucks.com

Starbucks is an information hub about coffee and, describing the process of making it, where it comes from, and the taste. They specialize in customer service. Starbucks isn’t just a place to buy coffee, it’s a place to sit and have a conversation with another customer or relax. Their employees are treated well, increasing loyalty. They have a China education program to increase the education level. They support locals and the environment. Starbucks tries to unite with the Chinese, not manipulate them into buying their products.

What differences do you see in the customer base in comparison to other countries?

What type of advertising do you feel works best?

Callison Architecture
www.callison.com

Callison’s work is grounded in an understanding of market dynamics that helps companies determine what to build, not just how to design it. They do architecture, develop operational plans, do graphic design, and various other services. They are motivated to strengthening ties with the community and their employees for a sustainable environment. They have a variety of links on their website that teach others tools or issues, such as thinking green.

What do you bring to the Chinese community?

Are most clients foreign corporations, which are more devoted to service?

What types of services do you most offer in China? And is a lot of it about educating?

CF Racing
www.cfracing.cn

Three entrepreneurs built China's first homegrown Formula 2000 car and will debut it in May. The entrepreneurs are a former Wall Street trader, the son of a movie director, and an ex General Motors Corp engineer. They saw this untapped market and opportunity. In an article they quoted, "We are here to develop serious real racing talents - not cater to the hobbies of the rich." This is for people with different backgrounds from all over the country to race. Racing is a costly hobby because of the import duty levied on the racing cars since there have been no Chinese companies capable of producing racing cars and had to be imported. CF racing cut costs by building the cars themselves. CFR was created to fill the gap between the interest for motorsports and the love for competition. CFR made a successful bid for the promotion rights of the established Chinese Circuit Championship (CCC) from the Federation of Automobile Sports of China (FASC). They are financed through a secured five million euro investment from European investors. The website shows images similar to what we see in NASCAR; however the vision is different.

What made you realize this was an untapped market?

What was the strategy for finding international investors for something that takes place only in China?

How do you plan on building enthusiasm for a new industry?

Augmentum
http://www.augmentum.com/

Augmentum’s vision is to be the best software development service provider in the world. The company provides “software development services from people who have outsourced development for their own most complex, most important, and most profitable products and solutions.” They create commercial quality software with minimum resources. They provide services with speed to stay ahead of competition.

How do you make the software worldwide capable?

What is the strongest service or service that clients demand that Augmentum provides?

Is there a trend in the services that you provide? Do you see your company changing or developing new services that are newly demanded from China’s growing economy?

Suzhou Industrial Park
www.sipac.gov.cs

This is the largest economic and technological cooperation project between
China and Singapore and in the most competitive industrial zones in the world. This shows how two countries can work together.

What was the main motivation for this collaboration?

Carre-Four
www.carrefour.com

This French retailing giant has headquarters in Guangzou and Paris. They are a competitor of WalMart. They are part of joint ventures and adjust to the Chinese markets. Their growth strategy is to double in the rate of store openings, to further strengthen the group in markets where it is already well established. They also make sure to follow the customers.

How do you market in China?

Do you feel the growth is more in China than Europe?

What are the difficulties in entering the Chinese market?

BEIJING:

21 Manager
www.21manger.com

The website is an open forum where managers from different industries discuss issues like marketing, project management, IT management, human resources, and corporate culture. Managers can exchange helpful information, suggestions, and opinions. Companies can also recruit on the website. This is a helpful business tool.

How was this idea created?

What is the user base and the amount of use?

Where does the profit come from?

Are their similar sources in China?

Center for International Business and Ethics
www.cibe.org.cn

This is an international non-profit research institution which hopes to help business ethics become more integrated with current business strategies in China. It has conferences and classes to help professionals understand ethics for their business strategies. CIBE wants a standard in China.

Have the ethics of businesses made a substantial improvement since starting these programs?

What percentage of businesses participates?

What is the current state of creating a standard in China?

Thomson
www.thomson.com

Thomson is an international leader in digital video technologies that serves the global Media & Entertainment industries. Thomson focuses on three sectors: services, systems, and technology. The services is management of media, the systems focuses on content, and the technology is where its developed. Thomson’s customers are content creators, content distributors, and users of Internet technology (these include movie studios, TV networks, broadband operators, game and software providers, and consumer electronics manufacturers).

Thomson offers products that help protect audio and visual digital rights protection, that provide secure content delivery, and help deter physical counterfeiting. They also are committed to sustainable development, trying to reduce their environmental impact.

How do you reduce the black market and counterfeiting so big in China?

Are there trials for counterfeiters?

How receptive is the Chinese market, and is it more receptive than other countries?

Do countries work together to protect their property rights?

Why are you focusing on sustainability when so few companies are in China?

Lenovo
www.lenovo.com

Lenovo is an “innovative, international technology company formed as a result of the acquisition by the Lenovo Group of the IBM Personal Computing Division.” They are a global leader in information technology. They provide customers with smarter ways to be productive and stay ahead of competition. They help customers achieve better productivity. It has a $13 billion annual revenue and provides products to consumer all over the world. They are supported by four main company values; customer service, innovative and entrepreneurial spirit, accuracy and truth seeking, and trustworthiness and integrity.

Lenovo globally provides the Think Family of PC products. This includes the ThinkPad notebook, the ThinkCentre desktop, and the ThinkVantage Technologies software tools.

In 1984, 11 computer scientists in Beijing created the company Legend. Their goal was to bring information technology to the Chinese people. By the mid 1990’s Legend created the innovative Legend Chinese Character Card (which translates English into Chinese characters), and changed its name to Lenovo. By 2003 its personal computing products held the leadership position in China. In 2005, Lenovo acquired IBM’s Personal Computing Division and became the global leader in the PC market. This alliance allows Lenovo to combine their superior products with IBM’s distribution and sales network. The goal of this research is to drive down the cost of PC ownership
while increasing quality.

They are proving the computer equipment for the 2008 Olympics.

How did the acquisition change your business model?

Who are your competitors?

How does your customer service play in a role in the market?

Beijing University
en.pku.edu.cn/

Beijing University is sometimes called Peking University. The University consists of 30 colleges with 93 specialties for undergraduates, 199 specialties for Masters Candidates, and 173 specialties for Doctoral candidates. It has become a center for teaching and research. They want to become in the top universities in the world by the next century.

How do you establish co ops with local businesses?

How do you market to faculty and students?

What is the ratio of students accepted to those who apply to the university?

Which programs are growing fastest?

A Memoir: Mr. China Book Review

2007-04-01T18:52:00.001-07:00

A Memoir: Mr. China
By Tim Clissold

Overview

Tim Clissold writes his story of experiences with business deals in China, their corruption, and a lesson that should be taken away by everyone. Tim and a former Football player and Wall street broker, Pat, enter China with hopes of being part of the growth and wealth that follows. They make mistakes and experience far too much corruption. In the end, they come out on top; but only learning how business is really done in China, through relationships to outsmart others and to halt their Chinese partner’s corruption and fraudulent attempts. It shows how there are so many cultural differences between Chinese and American business plans, in the past and currently.

This book has incorporated so much of what I have learned in my MBA classes, from finance, to ethics, the negotiations. It somewhat scares me how much control the Chinese government has in business deals. In every opportunity Pat and Tim were presented they had to have some relationship with the government and most of the time they failed them. It is amazing to see how there are almost always no written rules and regulations, and if there are, they are only for internal use. It is astonishing how American corporations and investors have done well so far. China holds so much power and it is evident as Tim describes the scenery and the business environment in the 80s and then presently. This book will help business investors and students understand a different way of doing business and help prepare them if similar situations as Tim’s arise.

All people interested in business or in China should read this book. Although this book has a few downfalls, it is overall a great educational tool. Investors can anticipate what will happen during business deals in China and what opportunities may arise. It discusses mistakes made and will help investors analyze the situations. Business students can look at the big picture of China, ranging from the business environment, to how the government was established, to the living environments. People who are considering traveling or working in China can read a firsthand experience before they take a chance and venture to a foreign country. Business people should read this, as some time in their career they will be faced with someone from China or travel to China. Businesses can understand the secrets of doing business in China and ways around mishaps. Important lessons are learned in this book, such as thinking about the cost benefit analysis of hiring cheap labor, or that it is hard to gain trust in China. Anyone with any interest in China or business should read this book to understand the real truths about trying to make a name for yourself in China.

Where Clissold excels

Mr. China shed light on a real experience on people trying to “get in on” a growing market in China. This book incorporates real life experiences, history, the language, the culture, the corruption, and the government’s involvement. There are so many dramatic examples of the previously stated.

Tim wanted to be one of the first big investors. He had the money that China needed. He realized China wasn’t like other foreign countries, like India, where the country is run by a few wealthy families; in China there is a way for outsiders to capture wealth. He was possessed, he tells his story of how, even after a heart attack due to stress he couldn’t leave. The opportunities, even with his past failures, were too great to walk away. He had curiosity and needed to be a part of China’s prosperity.

The history of China is informative and helps shed light on why business is they way it currently is. The Cultural Revolution is discussed in enough detail to understand and touches on how youth was set up to destroy and humiliate their elders in a country where face is everything. The detail throughout the book plants a vivid image in your mind of what the Chinese had to endure over the past centuries.

There is also a lot of humorous experiences mentioned, especially related to “drunkenness being a virtue” in China. He also uses funny dialect in sections to lighten the mood. Opposite humor, corruption is a key issue in this book. Through almost every deal there is an issue with the Chinese partner stealing money through fake “chops” (official seals) and the government helping whoever had the money or the best relationships.

Another strong feature in the book is the detail regarding the environment. The reader is able to see how the rural areas progressed into factories and highways within a few months to keep up with demand. You feel like you were there yourself, experiencing what Tim was faced with. He captures and embodies the reader.

Where Clissold falls short

This book has a few pitfalls that caused me to have to take breaks. There are many areas that were drawn out, such as the beer factory investment. He goes into so much unnecessary detail and repeats himself. On the other hand, the repetition shows its importance, but I still feel it could have been downplayed. Meetings were described sometimes in four pages, when they could have been slimmed down.

Another shortcoming was it is very one-sided. Tim is telling the story of an American investor who kept being played by the Chinese and the government. It also avoids the sotry of the poor factory workers until the last few pages of the book. I feel many angles should be approached, at least briefly, to allow the reader to form their own opinion. At times the business deals were so negative I was distraught as to ever entering China as a businesswoman.

In the end of the book he suddenly discusses the people and how their lives are slowly improving. I found it too abrupt and out of context with the rest of his writing. He should incorporate this more throughout the story, not just a closing thought.

Overall, this book grants the reader many opportunities to understand China’s business environment and history. It was drawn out and one-sided but all in all it was informative and a good investment of my time.

Thoughts

Mr. China was a story of a determined businessman trying to capture the Chinese market. I broadened my horizons and understand Chinese business dealings at a deeper level. Tim got caught up in the small things and his own battles that he said in the last chapter that he never got to look at things around him. He missed out on the scenery changing and the rural villages that are now seldom present.

The confidence of Chinese businessmen, the language, the bluffs, the interaction, and the fact that there are very few women enlightened me. There is such an opportunity for women in China now. The demand is increasing as women have a different mentality and way of business. The protests and negative communications might have been avoided had a more emotional human, possibly a woman, intervened.

Chinese government plays such a huge role, even injecting capital into the economy to increase demand and productivity. The government also does not post rules or regulations. When they decide to improve living conditions most companies have financial difficulties. When they ordered factories to use more durable bottles, over half the factories went bankrupt due to the sudden financial burden.

Relationships are key. When business deals turned sour the person who had the most connections could destroy the other party. One deal backfired and the Chinese partner’s wife knew the suppliers and the suppliers in turn sued the company and halted deliveries, causing the company to go bankrupt.

Most Chinese have such a strong bond with their country. People were at one point living in the hills building military gear, ready for war, even with their horrible treatment. The locals are grateful for everything they have. One factory had to pay their workers with shampoo and they were still so appreciative because most of them have nothing. There is so much need for improvement in the living conditions in China and the treatment in factories. Few American companies take the time and money to better others; they just care about the bottom line. Tim was more concerned about others than many firms, but it wasn’t until his departure from the investment firm that he saw the destruction factories caused.

The last thoughts he leaves with the reader are about the people. He sees their lives improving, slowly, and wants the reader to acknowledge that they are people too, not just tools used to make a profit. They are “flawed and beautiful like us” (249). They deserve to have their iron tree blossom like his finally did and hopes that in time it will. I see this improvement and am encouraged to not fall into the trap of using people and participating in bad ethics.

This book caused me to ponder on the true environment in China and experience what an investor who was sucked in to the opportunities felt and lived. This book either makes you want to enter the Chinese business environment, ready to grasp the wealth and opportunities, or make you want to help those who can’t fight for themselves, the locals.

Chinese Business Etiquette Review

2007-01-15T23:11:00.000-08:00

Chinese Business Etiquette
"A guide to protocol, manners, and culture in the People's Republic of China"
-Scott D. Seligman

Overview

Scott Seligman illustrates the opportunities to excel and the possibilities to not communicate properly and to offend. Each chapter is split into various scenarios or brief history. It ranges from gift giving to a business meeting. This book shows the way to act, respond, eat, joke, the reasons they do certain things, etc. It shows how there are so many cultural differences between Chinese and Americans, in the past and currently. Somehow in 250 pages I am given assurance on my abilities in a foreign country.

After reading Chinese Business Etiquette I feel that I will be able to survive a business/school trip to China. This country holds so much power right now, with current growth and even more potential. Since China is the one of the fastest growing business markets, with this book’s information, anyone can be a step further in their success in this country.

Students traveling to China should read this book or a book with similar content. Business people should read this, as some time in their career they will be faced with someone from China or travel to China. They may also learn of better ways for their corporations American protocol. People interested in learning how other countries perform in the business world should pick this book up, as well. Anyone with any interest in China or business should learn the tools in this book that can help them succeed in life. If some of these Chinese protocols, like the way they put their guests on such a pedestal, were used in America, the person implementing them would be perceived as more polite. Unlike a novel, this book is truth and informative. No one can refuse themselves an opportunity to expand their horizons.

Where Seligman excels

Chinese Business Etiquette was very informative. Each chapter showed a different protocol, scenario, or cultural distinction that allows the reader to understand the reasons or ways Chinese do business. Through few examples and much fact, Seligman gets right to the point and allows the reader to envelope as much knowledge as possible in a shorter length.

Since China is a highly “homogeneous society with little tolerance for deviation from generally accepted norms of behavior” (7), this book emphasizes the places where there is no room or where there is some room. Chinese do not like to be embarrassed or told something negative in someone else’s presence because it ruins their “face”. The issue should be mentioned to an intermediary instead so that neither party’s face is destroyed. This is an issue that has never changed. People can also lose face on their own (i.e. a public outrage). China has become more liberal on its historical protocol as it ages.

This book tells of etiquette that no business person should go without. Do not leave your chopsticks in your rice when finished. Let the host put your food on your plate and always leave some or they will think that you want more. Try everything at a dinner banquette, or explain why you cannot, because you will be viewed by your host as rude. Do not call people by their last names; they go by their first names. People do business with people that they have a relationship with, or they know someone who does. Most importantly, in my view and Americas (I think), is to be on time. These are a few of the items Seligman goes further into and allow the reader to get a taste of Chinese etiquette.

Seligman also discusses reasons behind things the reader might not understand. Chinese are socialized at birth to not show expression on their face. Some people might see this as rude; however, this book explains that it is merely part of Chinese culture. The example on saving face might seem peculiar to others. A boyfriend did not understand why things were weird in his relationship. It wasn’t until the girlfriend’s friend explained they were breaking up and broke up with him (69). Intermediaries are used for all conflict and complaints. The fact that most Chinese do not respect public property and you will see a home horrible from the sidewalk to the entryway and gorgeous on the inside is different. In America there a lot of people that try to “keep up with the Joneses” and the fact that people will allow the outside to be destroyed because it is not their responsibility or the way people will take a public piece and use it themselves is strange. Here things are seen differently and instead of a shock with arriving in China, Seligman explains beforehand.

A few more good points that Seligman expressed were that people will stare if you are weird looking, or a six foot blond. No one gives to beggars and they will only ask foreigners because they don’t know better. If a foreigner displays some sort of Chinese custom, they will be regarded highly.

This book goes into much detail with fewer examples to urge the reader to use their imagination. The points and manners mentioned are essential to be successful in China and to not be outcaste. Any little knowledge shows effort and puts you above other foreigners in China’s business world, and boosts you that much further.

The summary of key points at the end of each chapter was essential because there was so much information in each section. This also allows a person to reference back to certain protocols in the future.

Where Seligman falls short

This book is hard to critique because it is more of a reference book than a story. Seligman weighs different aspects more heavily. I took this as they were more important but others could just be annoyed why they were mentioned more. He discusses the issue of saving face many times. There were very few examples which allowed your mind to run wild, but also allowed the reader to not stay focused and interpret incorrectly.

There was such an emphasis on the banquet and meeting seating that it intimidates. The drawings make it easier to see; however, instead of giving each exact placement and explaining what to do if people were not there, Seligman could give a brief statement that would allow you to merely be familiar. Rank was also discussed and how we should be able to identify who is who. To me this is an impossible task and should not have been mentioned. Certain topics in this book only confused the reader instead of benefiting their endeavors.

I think this book enlightens us with so much information; however, it should compare and contrast to America to allow people to understand better. It was forwarded by Kapp, United States China Business Council, which shows a US connection. Allowing a reader to connect and touch home might encourage more of an understanding and awareness.

Thoughts

Chinese Business Etiquette was like a textbook, but more informal. I learned so much about Chinese etiquette in such a short amount of time. I feel this material could not have been taught more efficiently. Each chapter enlightens more. A few protocols I have heard, but this book goes into so many and explains each.

Each protocol, manner, and cultural area mentioned will make your brain tick. I was dumbfounded by some of the things Chinese find important and others that we are less formal about. Going by their first name in China would be considered rude in America. Most of America cares about the less fortunate and charity, while Chinese culture does not, according to this book. We both do not like to lose face.
China has so much power in the Business world and this book shows how important it is to act or do certain things to save you from embarrassment. Relationships are important in the Chinese business world and those wanting to do business need to not ruin the relationships they have or will possibly hold in the future. This book is truly a “guide” to doing business in China, and also shows the importance of doing your homework before going to a foreign country and assuming you know something. “When in Rome, do as the Romans,” is an important lesson to remember anywhere, whatever you do. You do not want to play football wearing a ballerina outfit doing the splits on the turf, just as you do not want to go do business in China acting unlike anyone else.

This book feeds anyone’s mind that reads it and opens the door to many more opportunities.

Confessions of an Economic Hit Man Book Review

2006-11-27T16:02:00.000-08:00

Overview

After being denied by publishers, receiving threats, and experiencing multiple hesitations, John Perkins knew he had to tell his story and found an excited publisher, not owned by an international corporation, to do so. John Perkins tells of his life as an economic hit man in order for the reader, and America, to understand our past mistakes and take advantage of future opportunities. We follow his journey in Confessions of an Economic Hit Man from being entrapped in a "mafia"-like cult, lying in order for the US to grow and become more powerful, manipulating, the moments he had doubts, to his life after an "economic hit man".

Economic hit men (EHM) are "highly paid professionals who cheat countries around the globe out of trillions of dollars" (page XI) by tricking them into contracts, rigging elections, murder, etc. and then receiving their servitude because of their huge debt. EHM indirectly work for corporatocracy (banks, global empire, governments, and corporations) to perpetuate, expand, and strengthen the system. Because of EHM, people are put to work in horrible conditions, cities lose all their inhabitants to pollutants or bullets, wars break out, and countries become slaves to the US.

John was recruited for economic development but ended up with a job similar to "James Bond." (13). He was mislead and soon sucked into the beliefs that the rest of the corporatocracy engulfed, greed and wealth. John was told keep his job a secret. It wasn’t until he finally saw his resume as a complete deception and heard stories from citizens of other countries that he tried to stop the destruction he was aiding.

Significance

Perkins illustrates the power our country holds. Towards the latter of the book he states that our ability to print currency gives us a lot of power and allows us to keep making loans that will never be repaid. Today this still holds, as we are the country that many turn to for help in wars and governments, we are the ones who have the "tools" to succeed, and we are the ones people look to for example. People in China are living an example of corporatocracy. Our corporations enter China and enslave people- some might disagree- to work for the bare minimum with horrible conditions, just so we can earn a higher profit. In China Rises, we saw of the factories and the conditions corporations create for farmers and people needing natural resources. Corporations destroy forests, pollute rivers, and kill people in China, and in many other countries, to fulfill their need of greed, ownership, and strength. This book opens the eyes of people asleep in the world that surrounds them, and forces people, who are awake, to reach into their hearts and make a difference.

Confessions of an Economic Hit Man will benefit everyone, even those with set beliefs that corporations are always beneficial to our country. Any person can listen to this story being told about John’s confessions in his life and relate. John tells of many examples and countries from 1963 to the present day; each of which deepen our insight as to what happens behind the closed doors of corporatocracy. Employees and corporation management and executives will see their lives in the eyes of someone who lived it and saw it from the outside. These individuals can take action or continue to live their lives, putting our country further into a pre-marked grave by revenge. Students, especially Business students, will be confused as to why they were taught to believe something else. This book will equip students with the resources to fight back. When students enter the world they will be able to make a valid decision on the way to live and what how to participate based on the story told. Even people with no business interest can take away knowledge on where they can make a difference. Every purchase we make or gallon of gas we buy affects someone somewhere, and therefore, no one in this world can read this book without being affected and their heart telling them to change.

Where Perkins excels

This book was very informative and entertaining. I never wanted to put the book down. Each chapter was a gripping experience that made me want to read the next. By reading a personal story, I feel more involved.

Each section is devoted to a time period, and then divided into chapters based on situations. Not only did I learn about the horrible situations in various countries, but I also learned about historical events, like the Canal Treaty in chapter 10. It is interesting to see a different side to stories you grew up learning or hearing. For example, I always heard rumors that Bush’s family gave money to Osama Bin Laden and funded the terrorism we encountered. This book tells of the School of the Americas, that trained terrorists, and how the Saudis supported a struggling oil company in which Bush was an investor. I grew up thinking those were rumors because of various people’s political views, but now I begin to question. This book makes you question everything you once believed, which is an outstanding tool to urge change and personal confessions.

There are 35 chapters that each tell a different story, but are in reality part of the same story. Confessions of an Economic Hit Man does not try to bore you with trying to see one huge story in detail like a history book. Instead, this book helps you see detailed stories put into a broader issue, like magazine articles. I didn’t want to stop reading because I wanted to understand everything Perkin’s saw and heard. From the prologue I knew of the issue and the chapters, built with a time sequence, enforced the issue.

There are many uses of metaphors, allowing us to relate differently. One is, EHMs are prostituting themselves out to lure in business and subordinates for our country. Another was Enron is similar to EHM because employees smile at the rest of us, but kept quiet. They also talk of "creative financing" and hiring people who know their way though the corridors of power. EHM are like the Mafia, providing favors, giving to those desperate, wearing fancy suits, and owning legitimate businesses. When debtors cannot pay the hit men move in and demand flesh or their servitude (163). A soldier was another metaphor. In the beginning, he is naïve and questions the morality of killing. He focuses on his own fear. Soon he becomes hardened with more killings and transforms into a professional soldier (211). Each of these metaphors allows more people to relate.

I was impressed with the thoughts that the book invokes and the recommendations of not just putting a band aid on the issue, but fixing it. What we do now will lead to our future. He offers his story, of what he did, and engages us to confess of our own sins to the world. We have free will and our choices brought us here. These stories will bring us to question our actions and when we realize what we have done to contribute we will take action, or at least feel relieved.

Where Perkins falls short

This book had very few short comings. Some people might feel Perkins was a little repetitive. For example, he mentioned Bush’s relationship with Saddam many times. I did not feel this way because each discussion made his point stronger, but I can see how it might be considered repetitive. There was also an exorbitant amount of examples; there could have been one less, even though each showed another piece of the broader picture of greed, wealth, and corruption.
After about ¾ the way through you begin to know exactly what the next story is going to say because each story had at least two other stories that were very similar.

There was never a mention about what other governments can do. There was such a blame on the US and never on the other countries for signing the contracts or allowing the corruption, they "did it because they had to survive." It was always our fault. There was never a mention about any other countries’ social responsibility. Governments are responsible for protecting its citizens and increasing awareness. These countries do not care about their citizens-Saddam could care less if the children receive education or health care. There should be a change within our own country, but in others as well. This is hard to do since we are the "enemy" to many. This is why we go to war, to help others (many disagree).

I think that Perkins sheds many insights that allow us to create a positive learning experience and change; however, I feel that he may feel too stronger against corporations. This puts a negative opinion immediately in the reader’s mind, unless they read it open-minded. If you were completely oblivious to the business world and read it, you would never buy anything again or listen to the radio- you would go into seclusion. Perkins did say there were other views, but people might not be able to focus on another view than what they read if it’s presented this strongly.

Thoughts

This book was one of the most eye opening books I have read; I knew that corruption existed, just on a smaller scale or pretended it was smaller. As a business major, I was behind corporations completely, even if they had a few misdoings. Once I started reading John’s story I became appalled that this is possible. Each story increases your heartache. This book should be read by everyone in business school or the business environment. Many people do not know of the extremities occurring or refuse to acknowledge it.

Every situation in this book will cause you to experience some thought process. The situations or statements that caused me to question corporatocracy the most were the discussion of 9/11 and our country seeking revenge the moment the first plane struck, when John writes how we are impacting our children’s future, and in Ecuador when a woman tells John her son. Her son is working for an oil company and calling them his friends after once working for an ecotourism company. The woman said, "He is no longer one of us. My son…" (245). People will be affected different than I am, but still will be touched somehow.

After reading Confessions of an Economic Hit Man, I am more curious about countries’ social policies and governments, including ours. I always think that someone else will care, or someone else can make a difference on the world scale. My thoughts prior to reading this book were to fix what is wrong here first. After finishing John’s confessions, I realize our problem’s cannot be fixed until we stop destroying other countries and causing an increase hatred among our divided world. The media is owned my corporations and so they too do not tell the real story. We are scared of the truth and prefer to believe the myths that we are a perfected economic system and are bettering the world. W need to realize that we create our own problems and need to be proud of the things we do. We need to come clean to ourselves and to others.

This book urges us to take action. The last thought to be left is from John Perkins, "The hour is ours. It is now time for each hand everyone of us to step up to the battle line, to ask the important questions, to search our souls for our own answers, and to take action" (265).