Irkutsk
Ulan-Ude

Blagoveshchensk
Chita
Yakutsk

Birobidzhan
Vladivostok
Khabarovsk

Magadan
Yuzhno-Sakhalinsk

Anadyr
Petropavlovsk-
Kamchatsky
Moscow

This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

Ticket to "Greater China"

Ticket to "Greater China"

Vladimir Lukashev

Expert on China and South-East Asia

Vladimir Lukashev, an expert on China and Southeast Asia:

- Once I flew to Hong Kong. That is not exactly in Hong Kong, but in Taipei via Hong Kong. And the fieldt from Moscow to Hong Kong was, as always, much longer and more interesting than the last part of the journey. Why it is longer is clear, but it is more interesting because you communicate with people who fly this route regularly. That time I was sitting next to a cheerful couple from Thailand. They once lived in Moscow, but now they live in Tae, where they have a restaurant. The restaurant, as they explained, is for the soul, and for making money - a small company in Hong Kong that supplies all sorts of small office supplies from China to Russia. To my question: “Do you have enough money for life?”, The guys laughed: “There are 10 million inhabitants in Moscow. Even if you just stand on the street, you will sell anything. " And they have contracts with stores. So that's enough for life.

This meeting made me interested in the question, who among Russians is doing business successfully in China? The main business of “ours” in China is the organization of purchases of goods for Russian stores. In fact, the same "shuttles", that in 1990-x, but already without the traditional trunks. Instead of trunks, there is a pen and knowledge of Chinese reality. But China is big and each province has its own specialization. Do you work with toy stores in Moscow? In China, toys are made in the provinces of Guangdong, Zhejiang and Jiangsu. Go there. For spare parts for cars in Shandun, and electronics is better to buy in the province of Shenzhen. For those who are not in the know, the devil will break his leg. So another business was formed for the graduates of ISAA and MGIMO. They advise those who want to buy goods in the Middle Kingdom and already know that not everything is so simple there.

Frankly, I think that sooner or later, the leadership of the PRC will have to restore order in its "all-China factory." But while “sherpas” are required for successful work on this huge roar. You can buy everything, but to buy competently and profitably, consultants are required. And this is another type of “ours” business in China. A good consultant is worth its weight in gold. Separate song - legal services. Legislation in China and especially law enforcement practice are very different from both Russian and European. It is interesting that there are quite a lot of Russian specialists here who have adapted to local conditions. In general, the people adapted. These are individual entrepreneurs.

And the company? I asked this question to my old Chinese friend. The answer can be formulated as follows.

First, companies operating in China save a lot. The cost of products manufactured there is much lower than in Russia, not to mention European countries. This applies not only to cheap labor, which, by the way, is slowly becoming more expensive. In China, you save money on low rent and preferential tax policies. But here, too, consultants are needed. Otherwise, the savings can go sideways. Each region has its own rules, and it is desirable to know them. Here, the Chinese partner can provide invaluable assistance, which must be chosen carefully and competently.

Secondly, political and economic stability. If you know China, there will be no surprises. And if, in addition, China knows you too, consider that life has been successful and the business is stable.

Thirdly, the prospect. China is developing. More precisely, China has just begun to develop. Today it is a worldwide factory. Tomorrow is also the biggest market on the planet. If you sell every Chinese child a candy - you will be brought in with the Guinness Book of Records as the most successful entrepreneur. Business has long understood this. Companies open representative offices in the country, just to "feel the market", realizing that the maintenance costs of the office will pay off at a reactive rate.

One interesting observation. Despite the fact that the Chinese direction at the moment is the most promising, no Russian oligarch has a serious business in China. Recently, shares in Chinese technology companies bought A. Usmanov, but he is also a portfolio investor. I think this is not the result of the short-sightedness of the Russian oligarchy, but rather the proof of the high competitiveness of those who seek to enter the Chinese markets. Those who have received their capital on 1990's mortgage auctions are clearly not able to compete with aggressive and well-prepared international business.

A very different picture for small and medium-sized businesses. Here, Russians have a clear advantage over Europeans and Americans. Our people received very good training in 1990. And the experience gained by shuttles, they still use. In addition, the Chinese mentality is very close to us. And not only positive features are close, but also negative ones. The success of China and our failures in the field of reform are based on the fact that we have accepted our shortcomings. And they are fighting. Here, for example, is corruption. In Russia, the last 25 years are talking about the need to fight corruption. In China, the war on corruption is an everyday reality. However, there are completely ineradicable shortcomings. So, an entrepreneur who knows China will never work there on a 100% prepayment. And he will never pay the entire amount without checking the product thoroughly. By the way, I think that the next step of the leadership of the PRC will be made in the direction of increasing the responsibility of its entrepreneurs. "The first goal is quality, and profit itself will come" - this is the slogan by which China will have to live in the near future.

Speaking about China, one should not forget about such an interesting phenomenon as the “gateway” to China. This is Hong Kong, Taiwan and Singapore. Each of these economic "dragons" has its own history. Each of them is also the “entrance gate” to the Chinese economy. In other words, these "dragons" are mentally and organizationally close to European and American business, and, of course, very well versed in the intricacies of the Chinese economy. All this allows them to earn on mediation. This is a separate topic.

But enough about business. It's time to say a few words about food. Chinese food, which is so strongly associated with the business. The Chinese have a cult of food in some way. Friendly relations are possible only with the Chinese you dined with. Even better, had dinner. About Chinese food can talk for hours. A more interesting topic is only Chinese tea. In my opinion, the most important feature of Chinese cuisine is how Chinese food adapts to a particular region. Like Chinatown, let's say in New York. It seems to be geographically America, but at the same time not America. Chinese cuisine adapts to the national characteristics of the countries in which it exists, and includes their traditions, while remaining a purely Chinese invention. And it is clear that only Chinese can cook Chinese food. And no one else.

I will also note the special role of the traditional duck in Beijing. In China, this is the most popular dish. And the most famous. The most delicious "Peking duck" I ate, oddly enough, in Taipei. And the most amusing in Novy Urengoy. It was at the end of roaring 1990. We went there to one popular local restaurant, which has nothing to do with China. And my friend saw in the menu "duck in Beijing". She ordered it. As a result, we brought a hefty goose, roasted on a spit.

"What's this?" - My friend asked suspiciously.

“Peking duck,” the waiter answered without batting an eye. 

September 20: current information on coronavirus in the Far East
Digest of regional events and latest statistics