ongratulations on
getting rich" (Gongxi facai) is the common greeting for the Chinese New Year.
In fact, in the Deng Xiaoping Era, "to get rich is glorious."
Indeed. China is now the world’s fourth largest industrial
base and the "world’s largest market for electrical appliances." What made this
possible is the reality that "the Chinese people love nothing more than playing
with money." [James McGregor. One Billion Customers. Lessons from the Front
Lines of Doing Business in China. New York: Wall Street Journal Books, 2005]
Plus the fact that even the ChiComs believe in the necessity
of ushering the capitalist stage in China. Four years before the victory of the
New Democratic Revolution, Mao Zedong made a political report to the Seventh
National Congress of the Communist Party of China: "Some people fail to
understand why, so far from fearing capitalism, Communists should advocate its
development in certain given conditions. Our answer is simple. The substitution
of a certain degree of capitalist development for the oppression of foreign
imperialism and domestic feudalism is not only an advance but an unavoidable
process. It benefits the proletariat as well as the bourgeoisie, and the former
perhaps more. It is not domestic capitalism but foreign imperialism and domestic
feudalism which are superfluous in China today; indeed, we have too little of
capitalism." [Mao Zedong, "On Coalition Government," April 24, 1945]
Way ahead of Mao, it had already been contended that the
Chinese market, along with the colonization of America, had given "to commerce,
to navigation, to industry, an impulse never before known."
"The bourgeoisie, by the rapid improvement of all instruments
of production, by the immensely facilitated means of communication, draws all,
even the most barbarian, nations into civilization. The cheap prices of its
commodities are the heavy artillery with which it batters down all Chinese
walls, with which it forces the barbarians’ intensely obstinate hatred of
foreigners to capitulate. It compels all nations, on pain of extinction, to
adopt the bourgeois mode of production." [Karl Marx and Friedrich Engels,
"Manifesto Of The Communist Party," From the English edition of 1888, edited by
Friedrich Engels]
Why are we now surprised that the tables have been turned?
That Chinese commodities, which are among the cheapest on Earth, are a deluge in
America and elsewhere?
Particularly in the Philippines. More than a century before
the American invasion, and in the midst of the Spanish colonialists, the Chinese
had already sparked the capitalist impulse. This observation about the Chinese
in the capital is illuminating.
"The great object of the Chinese shopmen appears to be, to
show the most varied, and frequently miscellaneous, collection of goods in the
smallest possible space; as, their shops being for the most part not more than
ten feet broad towards the street, leaves but little space besides the doorway
to display the attractions of their wares, and every inch has to be made the
most of by them. These China shopkeepers have nearly driven all competition,
except with each other out of the market, very few Mestizos or Spaniards being
able to live on the small profits, which the competition among themselves has
reduced them to. A China shopkeeper generally makes his shop his home, all of
them sleeping in those confined dens at night, from which, on opening their
doors about five in the morning, as they usually do, a most noisome and
pestiferous smell issues and is diffused through the streets. The Mestizos
cannot do this, but must have a house to live in out of the profits of the shop;
and the consequence has been, that when their shopkeeping profits could no
longer do that, they have nearly all betaken themselves to other more suitable
occupations, from which the energies of their Chinese rivals are less likely to
drive them.
"The number of Chinamen in Manilla and throughout the islands
is very great, and nearly the whole provincial trade in manufactured goods is in
their hands. Numerous traders of that nation have shops opened throughout the
islands, their business being carried on by one of their own countrymen,
generally the principal person of the concern, who remains resident at Manilla,
while his various agents in the country keep him advised of their wants, to meet
which he makes large purchases from the merchants, and forwards the same to his
country friends.
"Besides having many shops in the provinces, each of these
head men is generally in the habit of having a number of shops in Manilla,
sometimes upwards of a dozen being frequently all contiguous to one another, so
that any one going into one of his shops and asking for something the price of
which appears too dear, refuses it and goes to the next shop, which probably
belongs to the same man, and is likely to buy it, as he is apt to think –
because they all ask the same price – that it cannot be got cheaper elsewhere,
so gives the amount demanded for it, although it is probably very much too
dear." [Robert MacMicking, Esq. "Recollections of Manilla and the Philippines,
During 1848, 1849, and 1850." London: Richard Bentley, New Burlington Street,
1851]
What a game. For those who want to play with the Sons of the
Yellow Emperor, a few caveats are in order.
In 1998, the People’s Republic enacted a law prohibiting
house-to-house sales in the wake of riots provoked by the collapse of a pyramid
scheme. China changed its policy and allowed direct selling in the 21st century
only after its entrance into the World Trade Organization.
More lessons from the front lines of doing business in China
include:
1. Study proverbs like "Zhi lu wei ma" ("Point at a
deer and call it a horse."). That is, saying one thing and doing another.
2. Gu wei jin yong, yang wei zhong yong: "Make the past
serve the present, make foreign things serve China." This is a Qing Dynasty
slogan often quoted by Mao.
3. "Politics in China is a feudal and brutal contact sport."
[McGregor, p. 13]
Lastly, keep in mind the famous Mao dictum. "All things," not just political
power, "grow out of the barrel of a gun." ["Problems of War and Strategy,"
November 6, 1938]