59202 materials covered February 16

REVIEW
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987
$50 millon or more joint ventures – many approvals, including National People’s Congress
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD

THEN very different from Now

Then
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run –
long run –
PRC pushing exports
Now even more
Short run –
Long run
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan:
… why?

NEW

THEN AND NOW
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China

NOW
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC – one, service jv, 5 years to complete negotiations; another 2 years before production can begin plus up front costs, etc.
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN very different from Now

Then?
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run – roc, hk, prc
long run – prc, roc, hk, if ….
PRC pushing exports
Now


Short run – prc, roc, hk
Long run – prc, roc, hk
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan: Beijing, Beijing, Beiping … why?
Be respectful always

ART
Profitable? Why? 2 reasons
Wahlberg - .5 pt
Nanch .5 pt.
Ian .5 pt.
Yang .5 pt.
Tony – association? .5 pt.
Shauna – rare? .5 pt.

Labor-intensive
Technique intensive

Transparency international


Differences?

Key Philosophies in China:


Confusianist thought
Troy 1 pt.
Filial piety – part of Chinese thinking and culture
Ladd .5 pt.
Daoist thought
Ian 1 pt.
Buddhist thought
Hu 1 pt.
Communist thought
Mark .5 pt.
Yang .5 pt.

How is communism like a religion?
Party lines …
.5 ladd

Why is knowing philosophy important for doing business in greater china?
Confuianist thought
Philosophies
Up through basis of confucianist thought