Bribes in China

May 8th, 2010

Whenever the subject of doing business in China is mentioned, so are bribes. There is no denying that “bribes” are still a part of daily life in many aspects of doing business in China. It is so common that it is rarely even thought of as being wrong. Paying bribes is common sense in today’s China, and trying to do things “the right way” is often just seen as going against common sense and displaying your ignorance of how things get done when you are trying to get something done. It might be better to think of the bribes more as just “the expense of doing business” or a “fee” to get something done.

These bribes can be divided into two main categories: “good bribes” and “bad bribes”. Let me talk a little about that first.

● Good bribes

A good bribe is when you pay somebody to do something they should be doing anyway. It is a little grease to speed things up, which may take much longer than necessary without it. For example, when applying for a visa renewal, the person at the desk can make the process much more complicated and painful than it really needs to be. They can ask for documents that aren’t listed as being required in the regulations, they can interpret the regulations to mean that you have written something incorrectly and need to rewrite the entire document; these “corrections” can go on forever. However, without that persons stamp on your application you can’t proceed to the next stage of the process. Even though you are just trying to do the right thing the right way, for some reason it always seems to take far more time and energy that it is supposed to. In times like this, and there are many of them, giving the person at the desk a small “gift” can suddenly speed things up and make all those small problems go away. The result is just that your application proceeds according to the rules, you save a lot of time, and nobody has broken any laws. That gift (bribe) means that your application goes much quicker and smoother. This is so common at city halls, banks, police stations, hospitals, that it is no more than common sense.

In some cases, instead of giving a gift, you can just have “a friend” make a telephone call for you. This too can make all the problems go away and bring your application to the top of the pile. However, don’t be fooled into thinking that having somebody make that phone call will end up being any less expensive than the gift would have been. It’s much more complicated than that. (More about that another time . . .)

Bad bribes

On the other hand, a bad bribe is where you pay somebody to do something they shouldn’t do. For example, you might want somebody to overlook a small infraction of rule, or you might want somebody to break a rule for you. These kinds of bribe are less common than the good bribes, but are usually more expensive and much more dangerous.

You should never be the one to suggest such a bad bribe. If you bring up the idea, you could get arrested and that would just lead to more bribes! If the other person brings up the possibility of something getting done if you were to do something for them or give them a gift, you should think carefully about it. Whenever possible, consult a local friend before even agreeing to the idea, as there have been many cases where people have found themselves in a lot of trouble trying to bribe the wrong person.

How to know if it is a “good” or “bad” bribe

This is quite simple. For example, if you are trying to get something through customs, but are running into lots of paperwork and questions, and then you are told that all can be fixed for a certain price. All you need to do is ask yourself whether or not those goods should be allowed through customs.

If there is no real reason for the customs officer to be delaying your shipment, and you are just being made to go through lots of extra time-consuming hoops, then the chances are that it is a good bribe that is being proposed. On the other hand, if you know that the goods really shouldn’t get through customs, but you can get them through for a price, then there is little doubt that this is a bad bribe.

How to pay a bribe

There are many ways that these gifts are given in China. Though it may seem obvious, it is important to remember that nobody is going to give you a receipt for a bribe and, even if they did, you couldn’t use it as a company expense. Also, if you are seen giving, or the official is seen receiving cash, things can get ugly and complicated very quickly.

So, instead of giving cash, it is now very common to give prepaid cards to charge mobile phones, or gift certificates that can be used in local department stores. Everybody has a mobile phone and these prepaid cards can be used to charge any phone. The department store gift certificates, especially those for Japanese stores, have a certain social status attached to them. In addition to avoiding handling cash, there is another advantage of using these two items as gifts: when you purchase them, you are issued with an official receipt so the purchase can be written off as a company expense.

However, before you start criticizing these practices in today’s China, think back to how things were in Japan and other countries soon after the Second World War. In Japan, the same character used to write bribe was often read in another way and was used to mean a “gift given to show appreciation”. Vouchers that could be used to buy rice were a very common gift in the years after the war in Japan. I don’t think anybody would try and claim that bribes are no longer given in any society; it is just that the form of the bribes and the ways they are paid have changed with the times.

When in China, do as the Chinese do!

Living on promises

April 29th, 2010

It seems that the use of promissory notes is far more common in Japan than in other countries. Quite often a large company will only outsource work to a smaller company if they agree to the payment conditions set by the larger company that often include being paid by a promissory note if the monthly invoice total exceeds a certain amount. These amounts can be as low as 100,000 yen (approx. US$ 1,000), and the amount of time it can take before the promissory note can be cashed can be up to 150 days.

So, in Japan, where it is common to bill for work at the end of the month and receive “payment” at the end of the next month, if the payment is a 150-day (5-month) promissory note, you could find yourself delivering something on the 1st of January, billing for it on the 31st of January, receiving a promissory note at the end of February, and only getting your hands on the cash at the end of July. That’s seven full months after delivery!

While it is possible to use the promissory notes as collateral for short-term loans, it effectively means you are paying interest for the five months, and taking the risk of having to pay the money back to the bank should your client not have sufficient funds in the designated account when the promissory note is due.

This means that small businesses in Japan are being used as de facto financial institutions by their clients.

Fair? Maybe not. Common? Yes, in Japan.

Fake or just different?

April 16th, 2010

Is there anything that isn’t copied in mainland China? I can’t think of anything right now. What can’t be copied is imitated to a degree somewhere between flattering and illegal, perhaps covering both ends of the spectrum.

This is a mobile phone I came across last time I was in China (last month). While at first glance it appears to be an iPhone complete with Apple’s logo, a closer inspection reveals that despite the apple mark, it is not an iPhone, but an iPhcne.

While it does have a touch panel display, it is a fold-in-two normal mobile phone, and function-wise doesn’t bear any resemblance to the real iPhone.

I used to look for various spurious items in China. My mission now is to find something that isn’t copied.

Right tool for the right job

April 13th, 2010

The psychologist, Abraham Maslow, said that, “If the only tool you have is a hammer, you tend to see every problem as a nail.” It seems that many people who are more comfortable using MS-Excel use it for things for which it was never designed. MS-Excel is a spreadsheet application used mainly for creating lists and automating calculations. However, many people—especially engineers—seem to prefer it to more suitable applications such as its friend, MS-Word, for creating instruction manuals, quality manuals, and various other documents that would be better created with a word–processing application than a spreadsheet.

The document they create may look fine when printed and serve its initial purpose. However, it can go on to be a translator’s nightmare. When the translation is longer than the original, the translation often doesn’t fit into the same cell, and trying to resize cells or text boxes can result in a total mess, and takes much more time than the same translation would have if a more suitable application had been used to create the original.

Pages don’t flow naturally; text is often broken between various cells, meaning that it is much more difficult—or sometimes impossible—to use a CAT application to speed up the translation work.

So, the end result is frequently a less-than-perfect job that takes more time, and costs more money than it would have, and should have, if the original document had been created with an appropriate application.

Every tool has its purpose. Excel’s purpose is not writing pages and pages of text. Why do you think they named MS-Word “Word”?

Holding hands

April 4th, 2010

Different countries, different cultures, different norms. Nothing to be surprised about.

Yet, much of what people see in other countries does surprise them. One example is people holding hands in public.

Close your eyes and imagine two people walking down the street holding hands. Now, is one male and the other female, or are they of the same sex? Your answer is likely to be highly dependant on where you are from.

While in the UK, USA, and Japan, the only time you would see two adults holding hands would be when they are romantically involved couple, normally (but not always) male and female.

However, this is not true in all countries. For example, it is very common to see two young women walking down the street holding hands in China, and the same with two young men in India. It is not a sign of any romantic affection, just of friendship.

Women holding hands in China

 

Men holding hands in India