A CHINESE MANAGER'S PERSPECTIVE

 
 
 
 
I am honored to meet you. My name is Mr. Lee, and I am international sales director of the Golden Horizon Electronics Company, located in Shanghai, China. I began work at Golden Horizon as an engineer. Because of my familiarity with English I was a member of a technology group studying international developments in the industry. This led me to be assigned to international sales, in which I have risen to my present level of responsibility.

Permit me to say something about Golden Horizon. It began 30 years ago, and was known originally as State Equipment Company # 112. The new name was chosen to express the role that the company is playing in the development of the new China. Golden Horizon specializes in electronic controllers used in electric railway vehicles and other heavy electrical equipment. Our goal is twofold, to provide Chinese industry with controllers that meet the highest international standards of performance and reliability, and to develop a market for Chinese technology abroad.

As you can see, these two goals go together very naturally. If Golden Horizon is to meet the requirements of China's industries today, the product must be what in America you would call world standard. At the same time, the test of the ability to meet this standard is to be able to offer a product that is competitive in the international marketplace. I would describe this as a strategy of balance that is characteristic of the entire way i


     
 
 
 
    

 

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to retain earnings to invest in expanded production and improved technology. Our plant manager has to balance these different pressures. Official policy is to encourage expansion of firms, but it remains necessary to keep senior officials satisfied. This often involves providing gifts such as automobiles and entertainment, and sometimes well-paying positions for relatives, whether or not they are qualified for the positions they are given. Technically all of these practices are against the law in China, which is why I have requested anonymity for this discussion. However, it is established business practice, and for the most part everyone understands the line between gratuities that are a part of doing business and incorrect practices that disrupt the balance of relationships. Our expansion operations have brought us into business relationships with Japanese, Latin American, and Eastern European firms. Although Japan is closer to China, dealing with a Japanese firm is entirely different from dealing with another Chinese firm. For that reason, I will begin my remarks with my experience of working with Latin American firms. In Latin America, I am told, there is an old saying that translates as "I obey, but I do not

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