Seeing the modern cities of Beijing and Shanghai, their skies full of cranes atop burgeoning skyscrapers and broad, beautifully landscaped boulevards clogged with cars, you’d think China was becoming like us.
But wander off those major thoroughfares into the back alleys or into the cities and villages of the interior, and you’ll see a very different China. Even here, Western influences are evident from consumer goods to American corporations. Life, customs and expectations, however, are nothing like ours. Business practices are equally different, often unfathomable to a Westerner.
Earlier this month, I visited Kashgar, an ancient Silk Road city 3,000 miles west of Beijing, beyond the Gobi Desert and mountain ranges higher than the Rockies. It’s hard to believe this city of 1 million people is part of China. Kashgar is Muslim, with a 2,000-year-old history of commerce, done its own way. Kashgar’s Sunday market is famous for its masses of people, animals, donkey and bicycle carts, food and merchandise stalls, mountains of melons, vegetables, and animal carcasses.
Several years ago, the local government decided to bring order to this chaos of commerce by separating the animal market from the goods market, now housed in a mammoth market building. Ignoring these new rules, local merchants have restored bedlam by filling the surrounding streets with shops ranging in size from a blanket under an umbrella to tin shanties. They sell everything from carpets to knives to TV sets. Tax collectors wander among the tumult gathering a few cents from each merchant to ensure order and security.
Transactions in the animal market are conducted by hand contact. After thoroughly examining an animal, the buyer clasps the hand of the seller and taps out his price. The seller responds with his own set of taps and the back and forth continues until a deal is reached or the disgusted pair part company. Brokers often intervene, encouraging both parties to come to agreement and winning a commission for their efforts.
Kashgar sparkles with color. Women wear brilliant dresses, often just peeking from under an abaya. Others wear long gowns and brown burlap completely covering their faces. But, to show this is still China, not a seat of Muslim fundamentalism, many women wear bright-colored miniskirts and stiletto heels. The fabric market is a mass of richly woven and colored cloth where buyers and sellers bargain ferociously. The culture is Chinese, Muslim, and unique.
In this wide-open environment, as in the more urbane parts of China, contract law as we know it barely exists. Layers of decision-makers act independently of the law and one another, so just getting through one jurisdiction is no guarantee that you have a deal. Corruption is a part of the game available to rivals, but not to U.S. companies. Knowing the right people still counts for more than legal agreements. And knowing the people who understand all this and how to get things done in China is most important of all.
The U.S. embassy and consulates offer invaluable help to businesspeople interested in China. The economic and commercial officers often have long experience in Asia and a deep understanding of how the world of business works. They understand the culture and know the people you need to know. They can guide you in finding the right Chinese partner and alert you to the pitfalls that can sink your best-designed plans.
If you want to do business in China, it’s important to know what you don’t know. Unless you’ve lived in China for many years, you probably don’t understand the culture or the connections that will be crucial to your success. China isn’t like us. A couple of visits won’t be enough. Americans who have lived in China, U.S. embassy personnel and the right Chinese partner can be critical allies who provide a roadmap to success in this fascinating land.
Gail Schoettler (gailschoettler@ email.msn.com) is a former U.S. ambassador, Colorado lieutenant governor and treasurer, and Democratic nominee for governor.
