Q: Do you have a difficult time dealing with the local government?
A: We have an excellent working relationship with the municipal government. We could not ask for a better relationship. Every year we have a government-appreciation dinner. The mayor attends every year, and this year the U.S. ambassador was the host. We had 90 government officials, representing every major bureau that our companies deal with ！ from the highest levels to the levels that process paperwork. It was excellent.
We are also working on developing relationships with key districts in Shanghai. We have had one mayor ask us to survey our members about the business environment and how it can be improved. We have had roundtable discussions with customs to identify three key areas for importing and exporting goods out of China to help make the process clearer and expedite the process.
Q: What role does AmCham have in influencing Chinese government policy?
A: We take our role ！ what we call our government advocacy role on behalf of our companies ！ very seriously. We infuse it in all activities. Mayors have addressed our members. The head of the Shanghai ports was a keynote speaker at a meeting with our logistics and transportation committee. Government officials have sat down with us to discuss key human resource issues. We also work with AmCham China in Beijing for our advocacy role at the national level.
Q: Shanghai is very important to the United States. Would you consider it the gateway to China?
A: Shanghai is a very important economic player. It is responsible for 25 percent of China's GDP and most exports and imports come through the port. The port in Shanghai is a key player since China undertook it reforms and liberalization over the last 27 years. Around $660 billion of foreign directed investments, of that around $300 billion comes from the US. China is the 2nd largest trading partner of the US. Clearly,Shanghai is a very important port.
Q: Is Shanghai a better business environment than other cities in China?
A: Our members tell us that Shanghai is one of the best cities in China for doing business. Shanghai has a long history of doing business with the West. Western firms have been in Shanghai throughout its history. Shanghai is an extremely cosmopolitan city, and people here clearly understand how to do business. If you look at Chinese history and look at various cities in China, Shanghai has been known as a home for business.
Q: Have American companies been able to influence Chinese behavior in regards to business practices?
A: When working in another culture, it's important that you are thoroughly familiar with that culture and that business environment. We have seen businesses develop a hybrid of corporate culture, using education and training programs to bring up skill levels in China. We have seen that human resource issues ！ developing a highly skilled work force and a management team ！ are the No. 1 concern for our members. U.S. companies arrive with lots of experience, and must decide whether to adapt that experience to have a more Chinese flavor or strictly follow their American corporate model. Most companies find that a hybrid approach makes them more effective.
Q: How does being physically present in China change American businesses?
A: It is important to understand each other's culture. At AmCham we celebrate American and Chinese holidays. We learn from each other and have developed our own little microcosm of what I consider an excellent hybrid culture.
The Chinese have told me how much they enjoy working for American companies, because it gives them an opportunity to learn things and new ways of doing things. The opportunity for learning doesn't mean you're going to adopt every new practice, but American companies are known for their corporate governance and their search for the best practices, regardless of the source.
Q: How is the business environment in China?
A: The overall business environment is dynamic, exciting and fiercely competitive.
If you ask corporations what they would like to see improved, it would be continual dialogue with the Chinese government and improvement in transparency of rules and regulations for the business environment. The rule of law is important. We come from a very defined legal structure. Someone once said, "If you can function in ambiguity, you will do very well in China. If you can't function in ambiguity, don't come to China." When you come to another culture, understanding transparency, legal structures, IPR protection and direct market access issues are important. These are the key areas of improvement for expanding and growing businesses.
Q: I understand that Amcham is deeply involved in charitable work.
A: We feel it is very important to give back to the community in which you live and work. Amcham is involved in 60 charity organizations. We are a major sponsor for the World Special Olympics, which will be held in Shanghai in 2007. We donate the funds we raise though charity balls and fundraisers to the Healthy Athlete Program for Special Olympics. We are also working with migrant children to provide health care and education. Wherever we give money, we try to make a difference.
Q: What advice would you give to people looking to do business in China?
A: It is extremely important to know your own business, know your market, and know the Six Ds: due diligence, due diligence and due diligence.
Q: What do you enjoy the most about your job?
A: I have discovered the people of Shanghai are engaged in life, in every aspect, and that is what makes it exciting. |
