China Business and Censorship - Free Information for All!!

Well, we have all experienced, have been influenced by, or have lost jobs to China. The country is a veritable powerhouse that refuses to sit down. I visited China earlier this year and was taken back by the incredible entrepreneurship I witnessed (though, "eagerness to make a quick buck" may be more appropriate). Now, I think, in the future, the Chinese will wisen up and begin to more effectively communicate and deal with Western Civilization. But, right now, the Chinese are eager to "buy low, sell high", regardless of what brand may be on the product, regardless of who the buyer of the product is. In other words, as long as they are selling the Nikes for more than cost, they could care less who the buyer is, even if it isn't Nike. The counterfeit industry is enormous, and is continuing to grow.

But, China isn't the only culprit, recently, Spyder Ski Company intercepted counterfeit product coming from Russia. My conclusion on China is this:

China is full of eager factories and people ready to produce goods. However, these people lack the formal business management education in the West. Hence, they are trying to play in a formal business environment without the proper skills or knowledge of how this environment functions. BUT, as soon as they get the proper knowledge and education, WATCH OUT, because they could clean our clocks.

See, the Chinese see America as their opportunity to make it big. It's as if they have this idea that, "Just if I could get an American to import my product, I'll become rich". And, the basis of their thoughts are from other manufacturers they've seen becoming overnight millionaires from some American contract.

Where they fail to see the point is the true competitive landscape of America. In addition, they don't understand competitive advantages. What I mean is: Unless the Chinese supplier has a competitive advantage compared to other factories in China, then they don't have any advantage in the U.S.

They argue that a competitor Factory XYZ is selling thousands of Widget A. Therefore, if you, American, buy thousands of Widget A from me, then you can sell them in America just like Factory XYZ's customer. They don't understand that if Factory XYZ's customer is buying product from them in volume, then that customer already has the distribution channels set up in the States. They have the connections, the brand, the distribution, the marketing. So, I'm on a level playing field as soon as I import the Widgets. So, unless the factory in China has a competitive advantage to Factory XYZ, and therefore sells to me at a lower cost, I have no advantage in the States.

I know, I know, this sounds incredibly rudimentary and basic. You know what, it is!! There is nothing novel with what I just explained. Yet, for the Chinese, that logic just doesn't register. They just don't get it. At least not yet. But, as they become more educated, it will register. Boy will it register!!

But, alas, their government once again attempts to censor their information. But, there is hope for them. They can achieve their knowledge, albeit rather dangerously. As Marketing Vox blog reports, the Paris-based Reporters Without Borders has released a new handbook for the "Cyber-Dissidents". This handbook offers information on how to get around China's "clever mix of investment, technology, and diplomacy" censorship efforts.

I sure hope this made sense, because it is late, and I'm tired.