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Why do Foreign Companies come and go in Yunnan?

Long-Dragon (393 posts) • 0

In Yunnan many foreign companies tend to come for 2 or 3 years than leave. Why is this? Many are involved with or in Joint Ventures with private or state owned companies. The differences in goals between these two disparate parties, different methods of operation, coupled with frequently different basic ways of doing business, added to failure to listen to those who have vast experience in working in Yunnan create a path to difficulties. When you add in a few government agencies who apparently have failed to honor international contracts and agreements coupled with, in the past corruption, difficulty is even more likely. Add to this agencies that make it difficult to live and work with burdensome paperwork.
Yet, currently quite a number of multinational foreign companies are signing up for the Yunnan tour. German, Israeli, Finnish, Dutch, American and maybe others are coming this year. Perhaps they see something we do not. It is my sincere hope they will listen to those who know this province and be successful.
My comments may appear to be too negative in some respects. Yunnan is a great place to live. Costs to operate here and overheads are lower than many places in China. Climate and environment better. There are many wonderful and skilled people. The bio diversity, climate and soil variations from north to south make this place amazing diverse. Some say anything can grow here someplace. Sure we have our problems.

darkone264 (108 posts) • 0

I don't think you are being too negative, the fact of life is with different cultures and business practices problems and misunderstandings arise sometimes at the fault of the chinese and sometimes the fault of the Foreign country.

not counting actual corruption in the government. business is very possible and profitable if you have A foreign company with an employee that has skills for your business and has lived in china or better yet kunming for an extended period and can help with the eventual cultural differences and keep the peace if needed when working with chinese businesses

Liumingke1234 (3297 posts) • 0

Yeah, right. Until they still your ideas and business and kick you out.

Alexez (349 posts) • 0

LG :" number of multinational foreign companies are signing up for the Yunnan tour. " ...what is that tour about? where did you here that?

Long-Dragon (393 posts) • 0

The word "Tour" is a turn of phrase similar to "Tour of Duty" in government service. For example, with the USA foreign service this is often 2 or 3 years. In another vein We have done city familiarization "tours" for foreign companies employees.

GoK Moderator (5096 posts) • 0

90% of international JVs fail/end after the first year. A normal static told to me by UKTI. Usually it is cultural differences. But in business the term culture is much wider. For example, one could suggest that the cultures of Microsoft and Oracle and incompatible.

Long-Dragon (393 posts) • 0

Liumingke1234, you mean "steal" i think. This is about a common local practice where you "give" "them" ideas, information, contacts, connections, do work, all knowledge based, which is then used by "them" for "their" benefit and you get nothing. Well maybe not nothing. You get a meal, a drink or some small gift. Another stronger word some use is "crook".

Alexez (349 posts) • 0

LG: how do u do that familiarization "tours" for foreign companies employees? Could I attend one?

mike4g_air (788 posts) • 0

China's reputation as a place for business to fail is now common knowledge in the west. The tide has turned and more companies are leaving china rather than establishing here.

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