SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Don't Ask Rambi
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ilaine who wrote (41276)11/7/1999 8:44:00 PM
From: nihil  Read Replies (1) of 71178
 
You guys are too romantic. China is profoundly corrupt, and always has been. The entire government enterprise system is bankrupt, too deeply in debt to shut down. Most of the firms' assets are accounts receivable which will never be paid. The only way they survive is by dumping goods abroad under cost and pulling in foreign investment, most of which never shows a profit. Foreign companies like GM pump in billions but never make a profit. The cost of automobiles made in China is twice as high as those made in really cheap places (like Mexico).
It is very difficult to identify and negotiate a profitable deal in China. Local payoffs and buyouts are necessary. Using local management is often a disaster, and foreigners -- like Koreans -- are considered to be slave drivers.
The fundamental problem is that no one can enforce a contract. The courts are a disaster. Local party officials can make it impossible to operate. Power is unreliable. Transportation is tricky. Its difficult to get imports cleared.
The whole society works on "guan xi" -- relationships -- and not on rational and legal relationships. Chinese do have a sense of "being Chinese" -- which is a kind of resignation, acceptance of being dominated and treated unfairly. One reason Chinese are such successful emigrants is they have nothing to go back to. Thousands of Chinese pay as much as $30,000 each to escape from China. We catch about five illegal ships a year. The crews are imprisoned and the "passengers" returned to China. But they keep coming. Its a very profitable business.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News