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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: synchro who wrote (998)	12/23/1997 2:48:00 AM
From: Michael Bakunin	Respond to of 2951

Hi - Funny -- "a system that depends on the whim or benevolance of a ruler/mandarinate ascended thru inner circle power struggle & guanxi" describes Western office politics pretty well, it seems to me.

To: synchro who wrote (998)	12/23/1997 12:03:00 PM
From: Richard Tsang	Read Replies (1) \| Respond to of 2951

synchro, It is true that "guanxi" is very important to get things done in China but it is changing fast. I work for a US multinational in Shanghai and was personally involved in the start-up of this wholly foreign owned enterprise (WFOE) back in the days when there was no law to follow on the operation of a WFOE. Lacking of law was the major frustration then. To move forward, it took courage and patience, and lots of reasoning to support what we thought was right. In addition, we hired a government relations person to develop and maintain good "guanxi" with all government agencies. After 12 years, this employee is still with the company but she is often frustrated nowadays because there isn't much for her to do. The lack of law provides "grey" and opportunity for her to perform. Now the grey is getting less and less, she could not get the kind of job satifaction in her current assignment as before. Her job is not getting any bigger and so is her pay. She often comes to me for counselling....but she still thinks her job is very important! IMO, a system is building up quickly and properly in China and on the right direction. It certainly took external influence to create that momentum, but I think the day when China needed some outsider to tell her what to do is gone. Have a happy and safe holiday season & GongXiFaCai! RT

To: synchro who wrote (998)	12/23/1997 5:41:00 PM
From: ----------	Read Replies (2) \| Respond to of 2951

Synchro: I guess we can agree that we disagree. <g> There has been corruption ever since Eve got Adam to bite the apple. One of the reasons I like investing in Chinese companies is they are open about who is in favor. I bought CITIC Pacific many years ago simply because the "board of directors" was the Chinese central committee. One of their subsidiaries is an airline called Dragon Air. When a new air route came open in China, guess who the guy at the Chinese equivalent of the FAA gave it to? Bingo! The company he owned stock in. Unlike the U.S. system where one has to be "in the know" to find out who is getting paid off, it's public over there. No need to spend a long time finding out that Bob Dole got wealthy on a Senators salary because his wife started a catering company. I've read if you wanted to get your bill by Dole's committee, you best have his wife cater your party. We don't even need to go into The Iran Contra deal, payola, watergate, Burt Lance, Agnew, Nixon, Paul Simon, whitewater, ad infinitum. One thing I will give the Chinese credit for..... having money is no sure way to buy your way out of justice. (Remember O.J. Simpson?) The Chinese caught some wealthy executives dipping in the till. ::Bang:: they shot them. No Johnny Cochran, no F. Lee Bailey. You stole the money, you get shot. Regards, Doug