Monday, February 9, 2015

More Reasons Not to Invest in China

The Chinese way of dealing with their low-trust society is to engage in vice together:

But vice serves as a kind of screen, weeding out the rare few who might have moral qualms about future dealings. It tells both sides that they’re playing by the same rules. In contrast with the embarrassment of being caught re-gifting in the West, a businessman’s handing over “gifts” often highlight that he is already part of a network of giving. A standard phrase is “This is just a little something, somebody else gave it to me.” Refusing to play the game, on the other hand, comes at a sharp cost. Businessmen who convert to evangelical Christianity and make a commitment to avoid vice or bribery describe sharp business losses as a result, as former partners turn away from them, fearful of their newfound probity.
I can't say enough bad things about investing in China.


CP said...

"Every country has its own corrosive intersections of money and power, illegal or otherwise. But in China colluding with officials is a necessity, not an anomaly. For local businesses, a connection with the government is vital to protect themselves from predatory officials exploiting the country’s haze of regulations. Regular pay-offs are as ubiquitous as income tax elsewhere."

Steve said...

" colluding with officials is a necessity, not an anomaly"

You are writing about health insurance and mortgage lending, right?

Oh, never mind, it's about China.