APRIL 3 — “China is different.” Leaders of foreign companies in China hear that daily from their staff. Many leaders are replaced before the foreign company gets it: China is different.
China is so different that bookstores worldwide are laden with books on doing business in China. Over the years I’ve read many of them.
I’ve read them because I needed to be successful in China. I succeeded because I know in the core of my being that China is different.
I am writing about China now because of missing flight MH370 and the frustration being displayed by one of Malaysia’s best-known Malay Supremacists. His bland statements and dismissals will only make matters worse. Let me tell you a few stories about China.
First, disgruntled Chinese travellers
I’ve flown millions of miles globally. I’ve experienced many delays. Only once did a flight delay cause me to fear for my safety.
In Nanjing, China, I and hundreds of Chinese were waiting at the gate. Our flight was delayed over 2 hours.
There were no announcements. There were no airline staff at the gate, only a security guard. One passenger spoke with the security guard in a raised voice. Others joined in. It turned into a yelling match. I considered returning to my hotel because violence seemed to be in the air.
My experience was not unique. In December 2012 The Sydney Morning Herald published an article titled “Extreme airline complaints: Chinese passengers attack flight crews, open plane doors.” The article says “there have been dozens of incidents involving irate travellers on both domestic and international flights this year.”
Second, protests are common in China.
There are tens of thousands of protests in China every year.
In February 2012, The Atlantic reported that according to the Chinese Academy of Governance, 180,000 “mass incidents” were reported in 2010.
The Chinese protest for many reasons. Chief amongst them are corruption, land grabs and environmental problems.
On every trip to China I’ve seen banners, though I don’t know if they’re related to protests. My point is that China has a banner culture.
Third, the Chinese expect comprehensive responses
In high visibility cases, the Chinese government publicly acts against culprits and makes structural changes to prevent re-occurrence.
In the Wenzhou train crash of July 2011 forty people died and there was massive damage to equipment.
At first the authorities tried to do a cover-up – the evidence was quickly buried, damage was repaired; the news shifted from disaster to recovery. But they soon publicised actions taken against those thought to be responsible for the tragedy.
Two years later the former Railway Minister Liu Zhijun was sentenced to life in prison for corruption. Prior to his conviction he was ejected from membership of the Chinese Communist Party.
The evidence against him included the results of audits. The railway ministry was disbanded (BBC report). Do you think the Chinese are unaware of how the Malaysian government reacts to the Auditor General’s annual report?
Another example shows how good China is at creating and enforcing appropriate laws – though the world has the opposite perception.
In the 2008 Sanlu brand contaminated milk powder scandal thousands of babies were made ill and 4 babies died.
As with the train crash, it appeared there was an initial attempt to cover-up.
But the people – and the New Zealand milk company, Fonterra which partly owned Sanfu – wouldn’t let it pass. Neither would the foreign media.
Soon all milk powder suspected to be contaminated was withdrawn from the market, and “heads rolled.”
A desire not to “embarrass the nation” during the Beijing Olympics spared several heads (Economist report). Nevertheless, laws were changed and institutions were strengthened.
Fourth, enforcement
Many foreign companies operating in China believe foreign companies are targeted by Chinese regulators and enforcement agencies.
SKII is a line of premium cosmetics made in Japan and marketed to affluent women in China by Procter and Gamble (P&G) since 1999.
In September 2006 SKII ran into trouble in China. Government testing found SKII products contained trace quantities of Chromium and Neodymium, heavy metals which are not permitted under Chinese regulations.
P&G stopped selling in China and offered refunds.
Some Chinese customers were unhappy with P&G’s refund procedure. Unhappiness escalated; some SKII customers kicked down the doors of a P&G office.
Eventually SKII products were restored to the China market – after the regulators agreed the product posed no danger to consumers (China.org.cn).
The same product was sold globally, including in Japan, with no issues. No formulation changes were made. China did not apologise to P&G or to anyone else.
Another example is that of Evian bottled water.
Evian water is natural spring water from France. It’s natural: no additives, no treatment. It is bottled as-is. Customers worldwide pay premium prices for Evian water.
I am not aware of Evian water failing to meet quality standards anywhere in the world – except China.
Evian water has failed quality inspection by Chinese authorities numerous times. According to Global Times, Evian water has been blacklisted for quality problems 6 times in the period 2006 – 2012. One Chinese website said “Famous French brand Evian was found again to be exporting substandard mineral water to China.”
China is different, so we must respond differently
China is different. On this score our keris-waving acting Transport Minister and Defence Minister is correct. What he’s missing is how to respond satisfactorily to the Chinese.
All he has to do is bow deeply, apologise for the delay in speaking the truth, and answer these questions truthfully:
(1) Why did Malaysia take so long to conclude the plane was missing?
(2) What procedures did the Malaysians fail to comply with?
(3) Why does he believe the same failings do not still occur daily?
(4) When will the responsible persons be charged in court?
(5) Why do we not know where the plane is?
Truthful answers to those questions will begin satisfying the Chinese and all others that Malaysia finally gets it. That’s of course only the beginning. The Minister has to show that he considers our expectations reasonable. Now.
China is different. That doesn’t mean the Chinese have unreasonable expectations.
* Rama Ramanathan blogs at write2rest.blogspot.com
** This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online.