When The Chinese Government Talks You Should Listen.

One of the misconceptions foreign businesses often have about China is that their providing China with a few hundred jobs means they wield real influence. They start to believe that because some local government official has been solicitous, that they are somehow protected from all the bad things they read about that happens to other foreign companies in China.

For so many reasons, this is just not true.

One of those reasons is economic prosperity is not the be all end all of the Chinese government. Yes, China sees the gloriousness in being rich, but that is absolutely not the government's highest priority. Its highest priority is to stay in power and maintain the status quo.

China Digital Times just translated an article quoting China's Vice Minister of Foreign Affairs, Dai Bingguo:

To ensure the US-China relationship develops forward in a stable, healthy and long-term way, it is very important to mutually understand, respect and support the other side, and defend our own core interests.” Dai Bingguo continues on to say that China’s number one core interest is to maintain its fundamental system and state security; next is state sovereignty and territorial integrity; and third is the continued stable development of the economy and society.

This is the way it is and so the next time you are wondering why China is not letting you do something that you know would help bring wealth to China, ask yourself how what you are trying to do ranks within China's core interests.

Comments (3)

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Falen - August 8, 2009 2:07 AM

Of particular interest regarding the "territorial integrity" is to mind the issues of Taiwan and various border dispute, and the issue of Tbat and New Terrority(where the Ug people lives). Very often for retail type company or transnationals firms they would have websites or brochures showing Taiwan as a "country" selection in list of countries or Taiwan as part of China, or maps that does not "accurately reflect reality". The solution is to be politically neutral showing, for example showing Taiwan, Hong Kong, China as different sales "regions". This way a company avoid pissing off either the Chinese or the Taiwanese if they have operations in both places. Other than that, people in Taiwan and China generally understand that the political mess is not the fault of foreign corporation and won't really push the issue.

Maps that shows the disputed territories seems to be acceptable as well. However, showing T1ib-t or Xinji-ng as "disputed territory" is an automatic three-strike.

outcast - August 8, 2009 9:17 PM

So, does this mean that if it feels its power is threatended that the government will close the doors again?

Twofish - August 10, 2009 2:03 PM

If you do provide a few hundred jobs in China you do have real influence, although you have to be careful to realize the limits of said influence. It's just like if you are a foreign company that opens a factory in Alabama with a few hundred jobs. You are going to have some influence over the small town mayor or the county commission, but that doesn't mean that you are going to get invited to the White House for dinner.

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