Bukky Reposting Response to Brits make it Rich in China (Post 3of3)

Vance - Very streetsmart. Made his money from under cutting competition by selling cheap Chinese kitchens. Would go off the beaten track to get the cheapest prices for his products. Though he was very aggressive, I would venture to say, he needed to be that way to accomplish his goals. He was very distrustful of the Chinese business men based on his past experiences with them. They sent him damaged goods and did not deliver on their promises though they had his money. He seemed very frustrated so many times and I kept wondering why he did not leave and go back home. But he couldn't because he knew of the huge potential for success, the potential to make a lot of money that awaited him if he was successful. He seemed to make a few hasty decisions in his bid to have control over the products such as his purchase of the guary.Given that Vance himself had made a huge profit off the failures of others, it is amazing how much he could not tolerate the shortcomings of the Chinese. He did not want them to make a profit off him unnecessarily. There were situations where he was dupped out of his money with the Chinese business men not delivering on their promise. There were time when it was obvious the Chinese business man had spent Vance's money on personal items such as with Mr. Lee who then requested for additional money from Vance though he had not delivered on the intial money he received.My understanding of Mr. Lee's behaviour is that he considered the intial money given him by Vance as a gift or a requirement for doing business. This is the common practive in emerging countries. The business man is expected to give a bribe or gift before they can do business with the local people.It seems Vance is learning the ways of the local, he is willing to bend the rules to get his way. He had a fake Olympic inspection bus to enable him transact a little smoother. You could also tell he had a heart despite his hard exterior. He was willing to give Mr. Wong a second chance and not take his business away from his factory. Mr. Wong's factory provided employment for the village and this prevented the people from migrating to the urban areas for work.In conclusion, doing business in China or any emerging economy is a very risky venture with opportunity for huge profits if successful. It is very critical to study the people and culture before venturing to these nations. They are no courts to intervene and the law will also not be on the side of the foreigner. China is a nation that is growing rapidly. In order to sustain it's growth, it must put more structure in place to protect those coming to do business with it. The western world will only be permissive of this way of doing business for so long before a new economy emerges as the place to do business.
January 19, 2010 6:10 PM