before i start this topic, i think it prudent to say a little about myself so you can see where i’m coming from. I run a company between australia and taiwan that does trade and business services between the two countries and i also run a taiwan based online news service. in essence, we concentrate on trade services and business news/information about Australia and Taiwan - even to the extent of being commissioned to supply daily business information to a Taiwanese Ministry.
but i have many many people continually ask me, why do you concentrate on Taiwan only and not China? They say that the chinese market is much bigger and more lucrative. Likewise, they also ask that with my language skills and knowledge of china etc, then why do i work with taiwanese only and basically disregard the chinese mainland market.
i reply with human rights, corruption, pollution, hyprocracy, not trusting chinese business people and other similar issues but i get the impression that people think i am crazy for foregoing such a big market and a lot of potential. And i feel that i have to justify Taiwan for being a democracy and an open and free market etc.
so does this happen to other people as well? Do fellow formosans continually have to justify their “relationship” and fascination with Taiwan as opposed to China?
Yes i understand that the rest of the world is currently fascinated by China in terms of business and marketting but am i being too “socially conscious” when having to justify focussing on Taiwan only?
Your thoughts.
Mod note: I’ve changed the title from “justifying” taiwan for clarity, and moved this from Open to Business. --DB
My thoughts?
My thoughts, and arguments are similar to yours.
It seems a lot of people are so obsessed with low cost manufacturing and lining their own poskets, that they totally forget the quality of the products, trustwortiness of communication, reliable deliveries, commitment to gurantees and return/replacement of defective products - not to forget the softer issues like labor rights, environment etc. etc.
[quote=“X3M”]It seems a lot of people are so obsessed with low cost manufacturing and lining their own poskets, that they totally forget the quality of the products, trustwortiness of communication, reliable deliveries, commitment to gurantees and return/replacement of defective products - not to forget the softer issues like labor rights, environment etc. etc.
Hang in there, and stick to your business model.[/quote]
Aren’t these the same issues that were faced here in Taiwan 20 years ago as Taiwan was being industrialized? I think these will be issues for any developing industrial nation.
I think Taiwan has all of those problems, but just to a lesser degree and by the time China doesn’t have any of those problems, you and I will probably have long since passed away.
By not doing business in China, you are also in you own small way limiting its development, and isn’t it that very development which will lead towards progress?
I think as long as you don’t get caught up in corruption, exploitation and shady operations yourself, there is nothing moralistically wrong with conducting business in China, moreover, if you are limiting your business growth by not conducting such business over there, then you are limiting the growth of a business that is transparent and non-exploitative and whose operations are more than likely to be replaced by a business without your moral regard.
Even huge multinationals are struggling to deal with the size of China and the scarcity of skilled resources to run their businesses. I think the reasons stated for focussing on Taiwan are somewhat idealistic but the princial of focussing on one geography is sound. When challenged by locals I would simplay state that the business is still growing in Taiwan and that China will not become a focus until such time as the business here is self managed.
When China becomes attractive it will be specific areas initially and the OP can focus on these one or two at a time ( I am thinking Guangzhou province and Shanghai as examples).
Of course I agree that it is a sound model to concentrate on one location Mr Allen, but I felt that the OP justified the omission of China as a viable business location based on moralistic grounds rather than other constraints.
We should continue such discussions over more than a few beers…perhaps this weekend?
Plenty of moral reasons for not doing business with China, or with plenty of other countries if you want to make a stand. Would you refuse to use $s or oil if you disapproved of the Iraq thing though? I wouldn’t.
Taiwan’s a niche market. You’re a small company. You can do business here and make money, and you don’t have the resources to take on the whole of China or to compete with the rest of the herd. Just tell people to figure it out for themselves.
Hmmm, I would focus on Taiwan too, honestly, however if you work within an industry, and the Taiwan cost base reaches a too high level, you basically have to go. That’s happening to me, however by using contacts made here in Taiwan, we have so far been lucky. Sure you get screwed over, however that’s part of the game. Live and learn and do China step by step, once you have the chance to do so and someone to send the bill for your mistakes to.