CHINA'S DEFINITION: BUSINESS IMPLICATIONS

BUSINESS IMPLICATIONS

Before July 1, 1997, doing business in Hong Kong was fastest and in Taiwan almost as fast. Doing business in mainland China is much, much slower. In 2009, the relative speeds of doing business in the 3 economies of Greater China has not changed. For the foreseeable future, doing business in Taiwan will remain relatively fast, but conducting business in Hong Kong will be a bit slower. Trying to make money in Mainland China will continue to be by far the slowest of the three economies.

In 2009 business opportunities in Greater China are the most in Mainland China, second most in Taiwan, least in Hong Kong. In the longer run, when and if the PRC gets its act together, the business potential in Mainland China would be tremendous. It is a big "IF," and that if begins with the PRC's giving up of the communist system.

In doing business with the three parts of China, be sure that you use the proper name. Many years ago, a former Secretary of Agriculture gave a blistering talk in Des Moines, Iowa on our need to be faithful to our old friends the Republic of China and the evils of communism. Unfortunately, he was addressing a delegation from the People's Republic of China [Mainland China]. His translator, who knew the difference, purposely did not translate the Agricultural Secretary's remarks accurately. When in Mainland China, it is proper to refer to the capital of the country as "Beijing," but when you are in Taiwan, call the capital of Mainland China as “Pei P’ing.” In Hong Kong, in 2009, you should say “Beijing” for the capital of Mainland China.

When referring to the capital of China, in the PRC say, "Beijing." In Taiwan, most people, including some officials, will also say "Beijing." When discussing business with ROC government officials, however, saying "Pei P'ing" or "Peking" is better than saying "Beijing."XXXIt is always good manners and good business to respect rather than insult or denigrate you hosts. Hence, when in Taiwan, refer to the government as the “Government of the Republic of China," not the ”Authorities in Taiwan."