Why Chinese companies abroad are failing: cultural gap

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frankly, doing business in Africa is never easy. it's long journey same as its development of the continent. many Chinese companies invest there with very low ROI for short term. For locals, it''s also challenging to retain patience and commitment. You should first build usable infrastructure, provide enough education, keep stable environment. then step by step, you may catch up and finally pass through. but people tend to believe the easy answer for a complicated problem. "let's uncle Sam teach u the magic..." sounds familiar? "Shock therapy for Russia", "Freedom market for Chile ", "Privatization SOE for Philippine"...all are recorded effect of the magic. some may even argue why can't you see other successful examples. And I'd be frank again: none of those is due to Sam's guide, and most of them are coz of long term accumulation.

As the federal debt reached historical climax, US govt showed less and less patience to wait the natural procedure of development and mature of the newest market. We see more and more political manipulations there. I can't depict the full images of their missions. just two examples:
(1) “procure training for African Govt officers”, according to voice records of Washington DC, the main purpose is to prompt US goods, by carefully designing the "fit-able" procedure and soft-bribery( having chance to embed into DC-centered elites-network, free travel, recommend to local Govt, etc)

(2) "young leaders of next generation", those vigorous but naive young people are the best puppets DC can control. i don't want to give full detail of the project. its just sick me a lot. and remind me the old days when i was listening to VOA.

In Chinese, there is a phase: 卑鄙者的通行证(subhuman already has his super power), since subhuman has no boundary of its tricks, no moral burden of bloody-hands. So frankly again, I think constructive China can never win destructive USA in this case. China may better prepare for its plight future ASAP.

originalideas
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Once Chinese companies succeeded(or accurately to say they made good money) in Africa is basically based on their competitive price. But now that advantage is gradually fading, and the affordability in Africa is growing slowly.

It's a challenge for all entrepreneurs/investors in Africa. Culture gap does exist, well, business is more interest-oriented. Chinese companies go abroad on large scale very lately. A lot of them rush blindly, so failure is inevitable. Both state-own and the private, regardless of the size.

Relatively speaking, private companies play more important roles in integrating with locals. They are more flexible and relying more on the adaption of market changes. Not like state own ones, they are more relying on policy and governmental support. They are usually big and bureaucratic with complicated personal relations and formalist management, somehow maybe also have to play a role of introducing some kind of ideology.

peterchen
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I like the mosquito joke! But I have noticed this among my friends here too.

legaleagle
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`You should change the title to "Why foreign companies fail in Congo and France". The chines companies are doing pretty well in other African countries building the infrastructures and setting up factories.

johnkubik
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Now to compare French and German culture! Hehehe!
But seriously, German culture is quite different from French culture. D'accord?

legaleagle
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Really? I heard Xiaomi and Lenovo do well in Indian, Huawei do well in Europe. Is it wrong?

sidwang