I have noticed something funny about a few commercial buildings that were built recently in Shenzhen. The top floors are empty. Or, should I write, the place that should be occupied by the theoretical top floors is empty. You can see it on … [Read more...]
The value of promises in China
Chinese exporters have grown wary of the foreigners' rigidity, and they often do all they can to avoid precise promises. It can be a shipment date, a certain level of quality, a proportion of wastage of materials, etc. What Americans of … [Read more...]
Giving money to inspectors? It’s normal!
In the QC business, the worst a supplier can do is denounce an inspector to the buyer for corruption. Sometimes it is true, and I'm happy they open up about it. But I investigated some cases where all appearances were against the supplier, … [Read more...]
Understanding the Chinese system
I am reading River Town by Peter Hessler. This book is packed with insights about what I call the "Chinese system". The story takes place in a small town of Sichuan province, around 1997. The author worked there as a teacher. He wrote … [Read more...]
How Chinese factory owners treat their workers
I mostly go to factories in the Guangdong province. Over the last few months, I have heard complaints such as "we are trying to hire, but we can't find enough workers". I even heard "it's nearly Chinese New Year, the workers that stayed in … [Read more...]
Chinese consumers are getting more demanding
I found this advertisement in my lift this morning: Do they really need to advertise for milk consumption? I know the central government is pushing it, but it was already growing very fast in large cities. Or is it because of safety … [Read more...]
Respecting contracts and telling the truth in China
China Business Success Stories just posted an interesting article entitled What Do We Mean By 'Trust' In China? by Frank Gallo. Nothing really new, actually, when you consider all the business books already written about China. But it is a … [Read more...]
China low quality: the underlying reasons
The Economist just published an excellent article entitled “The flaws in Chinese business - Time to change the act.” The beginning of the article focuses on the impact of the current downturn on Chinese business. Then it goes on to explain … [Read more...]
Why quality can be so bad in China
There are all kinds of factories in China. A few are truly world class (think of the joint ventures producing luxury cars, for example). Others are good enough for the core (and the low-end) of Western markets, in dozens of … [Read more...]
Chinese vs. Western business: different ethical standards?
Last night I had dinner with someone from the Trade and Industry Dept. here in Shenzhen, China. A very nice individual, who studied and traveled in the West. I was asking questions about the foreign investors, and he confirmed that many … [Read more...]