From Dragon Exports’ The China Report:

Counterfeiting, defrauding, and dishonest websites are becoming an increasingly rampant problem on Chinese search engine result pages. Through recent investigations conducted by Chinese authorities, a number of Chinese websites were found to be promising 800% returns on investments, but simply taking the money and running once bank transfers were complete. Numerous investors have reported significant losses stemming from such schemes, and China’s legislature is currently considering regulations to standardize online markets. For now, we recommend using only websites you’ve heard of!

A large variety of factors has led to the current lack of effective regulation in some Chinese industries. Below are some reasons why the Chinese market has become the way it is.

“Guanxi” in China is, as you may know, embedded in almost every facet of daily life here. When you buy a car, or a home, or often even dinner at a restaurant, it’s far more cost-effective if you have a “friend” in the company who can talk to another friend who knows someone else who can lower your purchase price. It’s all about finding someone to break you a deal, and of course with the understanding you’ll return the favor one day. In this respect, the Chinese marketplace is extraordinarily regimented: if you don’t return a favor, you really don’t know how many other people are going to hear about it, and thus not help you in the future. Once you play the game, you’re stuck in it.

So what does guanxi have to do with fraudsters on the Internet? Well, consider the situation. A group of unsavory fellows decide they have the perfect plan to get rich quick, and open a website that is going to trick people into sending them money. When they open the site, however, there are ID checks performed by the webmaster (these are government-ordered for anyone running a website), so guess who you need to bring into your scheme if you want to pull it off? The webmaster, and maybe his boss too. If a scheme is going to rake in enough money, it’s quite easy to understand how, in such a society, this sort of criminal activity might perpetuate.

Another reason for the lack of control is of course the speed at which Chinese society is changing. Every single aspect of the economy is exploding, and it’s hard to keep tight grip on a tether being pulled in 10,000 directions at once. In addition, consider the older generations in China, who were not born into a capitalist economy. In the past (i.e. before 1978) when the government announced it would do something, it usually happened (whether that’s a good thing or not is something we can debate another time!). So now, when an older Chinese citizen sees an advertisement on the Internet, it is more than likely he is going to be rather naive in his financial decisions — after all, no one owned cash in the past. These people will unfortunately learn how to survive in a semi-capitalist society the hard way.

As China’s economy matures, these growing pains will likely dissipate to some degree, though there isn’t a place on earth where you can trust everyone. A market thrives when people act responsibly and smartly with their money, and that’s the route China is on. While guanxi remains an issue, in the end it is not the most efficient way to do business. So long as the government continues to relax control of the economy, the problems with corruption and relationships will ease as well.

—
The Dragon Exports Team

Buen día !

La semana pasada platique por teléfono con un amigo que vive en EUA. El ha estado en China de negocios ya varias veces, y tiene un buen entendimiento de la cultura China, tanto de negocios como cultura general.

En lo personal me considero un fanático de la cultura, sobre todo de la cultura Asiática. China, India, etc.. y cuando se presenta la oportunidad de tener una conversación profunda con alguien que aprecia y le interesa aprender mas, es para mi un placer participar.

Es cierto que la China actual esta lejos de ser lo que uno como extranjero tiene en la mente. Su desarrollo económico es tan rápido, que en la vida diaria no queda tiempo para recordar los mitos e historia de esta, la civilización mas antigua del mundo.

Tengo en mis manos, un excelente libro de cuentos cortos que quisiera recomendar. El nombre es “Reflexiones del Vencedor” por Michael C. Tang.

Cada cuento viene cargado con una o mas lecciones de vida, sabiduría e interesantes historias. Eso es lo fascinante de este libro, cada cuento es como un trago de sabiduría.

Aquí uno de los cuentos mas cortos del libro, que tomara 2 minutos en leer.
Que lo disfruten!!

El Detector de Mentiras

“El que ha hecho algo malo pero teme que lo descubran, todavía puede salvarse. El que ha hecho una obra buena pero tiene ansias de darla a conocer, ya esta manchado.”

Raíces Vegetales

“En tiempos de la dinasta Song, hace unos mil años, había un magistrado llamado Chen Ziang, en la provincia de Fujian, en el sur de China.

Cierta noche hubo un robo en una posada y desapareció una cantidad importante de dinero. La policía detuvo enseguida a todos los sospechosos de la posada y de sus alrededores. Eran quince personas en total. Pero ninguna se reconoció como autora del robo.

En una primera audiencia, el magistrado Chen no encontró pruebas suficientes para acusar a nadie. Acto seguido anuncio que en un templo que estaba al norte de la ciudad había una campana de bronce antigua que tenia el poder divino de distinguir a los ladrones entre las personas honradas.

Envió a varios agentes de policía a que pidieran prestada la campana y la trajeran. Cuando se coloco la campana en la sala de audiencias, el magistrado le hizo una reverencia y le pidió solemnemente que emitiera su veredicto en el caso presente. Hizo venir a los quince sospechosos ante la campana. Les dijo que cada uno de ellos debía tocar la campana con las manos y que si el hombre era inocente, la campana guardaría silencio cuando la tocara. Pero si el hombre era culpable, la campana sonaría.

Entonces apagaron todas las luces y la sala de audiencias quedo completamente a oscuras. Los sospechosos se fueron acercando uno a uno a la campana de bronce, que estaba colocada detrás de un biombo y apoyaban las manos en ella. La campana no sono, y el publico de la sala se quedo desilusionado, viendo que todos habian superado la prueba.

Cuando se volvieron a encender las luces, el magistrado pidió a los sospechosos que enseñaran las manos. Entre todas las manos negras había solo un par de manos limpias.

-Tu eres el ladrón- dijo el magistrado Chen, señalando al hombre que tenia las manos limpias.

Previamente, el magistrado había hecho cubrir de hollín la campana. El ladrón no se había atrevido a tocarla por miedo a que lo delatara.

El hombre, ya detenido, confeso el robo que había cometido.”

Tang, Michael C., “Reflexiones del Vencedor”, EDAF, 2001.

Last night I had dinner with a friend of mine, we happen to live in the same building complex so our apartments are very similar. He was telling me he just payed his electricity and water bills, and I was surprised to hear that his electricity bill was way higher than mine. We both use the same home appliances, air con, etc… there is just one difference between his apartment and mine, the water heater.

In China, it is very common to use one of these 3 water heaters:

1. Electric water heater
2. Gas boiler heater
3. Solar Water Heater

My friend happens to have an electric water heater, and I have a solar water heater, that is why his bill is always and will always be higher than mine.

I want to introduce this Solar Water Heaters to you, this is what it looks like:

You have probably seen them before, they usually go on the roof of buildings/houses, if you have been to China, I am positive you have seen them, especially in the north of China, where most habitants are not as wealthy as eastern China, and each penny counts.

To be honest, before using a Solar Water heater, I was skeptical about them… I worried if they would really heat the water, would it be hot enough, bla, bla, bla. It was until I moved to this new apartment, where I really had no choice, because the solar water heater was already installed here. So perhaps the universe sent it to me…

So I started using it, got used to it, and after a week, I understood why so many apartments in China have these heaters, they work!! No wonder why it has become such a big industry in China, this technology, pretty simple by the way, has more than 30 years of experience in this country. In simple words, the way they work, is circulating water through the vacuum pipes, this pipes get the heat from the sun, then the water gets hot. They also need very little maintenance, they wash themselves with rain, and the only problem you might have, is a broken pipe, which it is very easy to change, I changed mine myself actually…

So what happens in the winter, when the sun is out for a very short period of time? The solar water heater has an accessory, an electric resistor that looks like this:

This accessory is also designed to use very little electricity, and you will be using it only in the winter time (say 3 months a year), actually it depends on the climate of the area where you live, perhaps in you country, the sun is out also during the winter, you will use the resistor for even less than 3 months a year.

So there is no down side about it. These heaters will save you money on the long run, your electricity and gas bills will decrease for sure! And you will be doing the atmosphere a favor, reducing gas emissions. Sounds good doesn’t it?

Interested? Send me an email to info@dragon-exports.com We will be happy to assist you!

Cheers!
Sergio

En Dragon-Exports deseamos que tenga un muy buen Año de la Rata!
Esperamos poder servirle con sus proyectos en Asia este año.
Gracias por su constante apoyo!

Sergio de Leon

¿¿Obsesión?? Algunos dirían que sí

Todo extranjero que pase un tiempo relativamente largo en China, se dará cuenta de la importancia que tienen los “números de la suerte” en China.

No es ninguna coincidencia que los próximos juegos olímpicos en Beijing, comiencen el 8 de agosto del 2008 en otras palabras el 08/08/08.

En China, el número 8 (“ba” en mandarín) es de buena suerte. Su pronunciación es muy parecida a la de 法 (fa) que significa fortuna o posperidad. Gente paga increíbles sumas de dinero por tener el dígito 8 en el número de teléfono de su negocio, o en las placas de su auto. En el 2006, una empresa de motocicletas, pagó $ 32,000 USD por una placa con los dígitos 6 y 8. El 8/8/08 se espera habra un número récord de bodas en China.

Otra razón por la que el número 8 es tan querido y considerado número de la suerte, es por su perfecta simetría. Se puede divir en dos partes y ya sea horizontal o verticalmente, ambas partes reflejan exactamente la misma figura, alcanzando un balance perfecto.
En la Astrología China, tener el balance perfecto es considerado el estado ideal del universo.

SLC

One of my favorite dishes in China is pidan. It is a tasty fermented duck’s egg with a very particular flavor. It is dry and salty, something like an old avocado
Although it is not that appealing for the human eye, when you look at it, you can’t help but feel curiosity about what is that black egg in front of you, and most likely you’ll end up trying it.

Here is a quote with a bit of history and more descriptive facts about this Chinese delicacy:

“In earlier times visitors demonstrated their respect, awe and sometimes fear of Imperial China by bringing gifts for the emperor, members of the Imperial Court, and other high personages they expected or wanted to meet.

Abiding by a very strict formal etiquette in all meetings with members of the Imperial Court and ministries was also an essential requirement for foreign visitors, with the most notorious of these requirements for Imperial audiences being the kowtow, which required that individuals get down on their knees and touch the floor or ground with their foreheads.

When Europeans began visiting China and were confronted with the kowtow it was a shock to both their dignity and feelings of superiority. Some were so incensed that they were expected to bow down to a “heathen emperor” that they talked of showing the Chinese what’s what with the force of arms.

The Chinese no longer expect visitors to lower themselves to the floor, but they still expect that they demonstrate both goodwill and friendship toward China in a variety of other ways.

One of the most interesting tests of both appreciation for Chinese culture and friendship for China (the latter meaning that one is willing to go well beyond the half-way point to prove friendship), is weather or not one can eat a pidan.

A pidan is a so-called 1,000 year-old egg. Of course, a pidan in not one thousand years old, although it looks like, smells like, and tastes like it could be.
Pidan are “cultured” by coating with them with a layer of lime and clay for six to ten weeks. The lime soaks through the eggshell, turning the egg white to a bluish brown, and the yolk to a dark green.

Not being able to stomach a pidan does not mean you cannot develop a satisfactory relationship with Chinese or do business with them. But downing a mucky “1,000-year-old” egg with gusto will certainly raise your stock in everyone’s eyes.

Actually, there are many other things on a typical Chinese menu that are more challenging than pidan, things whose names alone are enough to discourage most newcomers to Chinese cuisine.
Declining such delicacies should be done with diplomacy and self-deprecating humor to avoid hurting anyone’s feelings.”

Lafayette De Mente, Boy©, “The Chinese Have a Word for It”, Passport Books, 2000.

Photographs from k-shoku.com

Aproximadamente hace 7 meses recibimos este espejo de nuestro socio en Monterrey Mexdollar International.

Un par de semanas después, manufacturamos este:

Cumpliendo las expectativas de Mexdollar International, mejoramos la calidad a un mejor precio.

El día de hoy tenemos 2 fábricas en la provincia de Zhejiang, trabajando a su máxima capacidad produciendo espejos para todo el 2008.

Así­ como el espejo de Mexdollar International, prácticamente cualquier producto puede ser manufacturado en China, disminuyendo el costo por la mano de obra barata en China. Sólo hay que conocer la mejor región donde manufacturar y hacer la diligencia debida.
¡En Dragon-Exports nos encargamos de esto!!

Y no sólo con espejos, sino que a través de Mexdollar International y Dragon-Exports, podemos encontrar el producto que usted busque.desde un alfiler hasta maquinaria! Puede estar seguro que le vamos a ofrecer la mejor búsqueda para cualquier producto que esté buscando.

Creemos que lo mas importante es crear valor para nuestros clientes y socios, esta es nuestra meta en Dragon-Exports: dar valor a su negocio.

Prueba de esto es la sociedad que hemos formado con Mexdollar International en Monterrey, Mexico. Nos da gusto decir que tenemos mas de un año de trabajar juntos, y hemos formado un equipo.

¡Queremos motivar a mas empresas que pasen su negocio al siguiente nivel, manufacturando y localizando productos en China y Asia! Con Dragon-Exports tienen un socio confiable en China, que hara crecer su negocio de eso estamos seguros!

Esperamos tener noticias suyas pronto!!

Atte.

Sergio de Leon

The holiday season is quickly approaching, which means people are buying things – lots of things. And while it’s too late for this year’s season, next year’s Christmas purchasing period is wide open to investment. If you have an idea about importing a certain product, or desire to import goods to your country from China, we can help you at every step of the way. Be it industrial goods, toys, make-up…anything you might need, we can find and guarantee quality and speed of delivery for you.

If you’ve got an idea but no solid plans, contact us right away – we can give you concrete advice and information about the current state of the market and the conceivability of your idea. No strings attached, and no round-about discussions; we’ll tell you straightly what the real value of an idea is, because we value and understand that honesty means repeat business. We’re partners and friends working together.

So consider what 12 months from now might be like; will stores be stocking your merchandise?

ChrisP

“There is an old saying in China that you cannot clap with a single hand, a reference to the fact that getting things done depends more on a web of connections than any other factor.
The importance of connections in China derives from a historical lack of rule by law, impartial judgments and behavior based on universal principles.

In the Confucian concept of the world, virtuous rulers (who were also presumed to be wise and benevolent), including regional and local magistrates did not need to conduct themselves according to precise, immutable laws. Instead, they were expected to make the right decisions based on their own standards of morality and ethics.
But this system led to corruption becoming institutionalized in China, creating a society in which the only thing an individual could depend on was personal connections.

There were, and still are, two kinds of connections in China- direct connections, meaning members of one’s own extended family and other relatives, former classmates, ex-teachers, co-workers and others one has gotten to know personally: and indirect or “associate” connections, referring to people whom your direct contacts now.
Using indirect or associate connections is known as la guanxi 拉关系 or pulling (one’s) connections.
Both direct and indirect connections work in China because the custom has been ritualized and sanctified as the right thing, the moral thing, to do. Anyone who does not respond as expected, loses face, is regarded as immoral or uncivilized, and is no longer trusted or respected.

The effective use of la guanxi is a subtle and sometimes dangerous exercise. It requires that your direct contact have current and precise information about his or her relationship with the person that you want to meet or need something from.
If the relationship is no strong enough-if the social debt owed by the indirect contact to the direct contact is not sufficiently large to warrant a favorable response-the effort may result in some irritation or anger, and fail.

Asking a direct connection to use his or her contacts on your behalf naturally puts that person on the spot. If you misuse or abuse the connection, it could destroy the relationship between the two connections.

Because of the personalized nature of most social and economic relationship in China, making and maintaining connections is an overriding necessity that is pursued with considerable intensity, significantly influencing the behavior of people, including inducing them to lie and to be excessive in their praise of others.”

Lafayette De Mente, Boy©, “The Chinese Have a Word for It”, Passport Books, 2000.

It all started with a directive from Deng Xiaoping in the early 80s: China must open its doors to the world. And from that time onwards, especially in the last five to ten years, the world has been pushing and shoving to get in that door.

China’s economy is growing extremely fast, and while some point to the negative aspects of this growth, it is worth noting the enormous progress that has been made in such areas as living conditions, education, and modernization in general. Literally hundreds of millions of people have been lifted out of poverty in a single generation. And if that’s not impressive enough, think of this: within the next twenty years, China’s economy is set to become the largest in the world.

With such enormous growth potential still waiting for someone to “walk through the door”, it’s easy to see why so many people are choosing China as a business partner. Its products are cheap and reliable (Dragon-Exports makes sure they are; we have people at our suppliers’ factories personally inspecting and guiding production), and they are of course produced on time.

China’s capacity for growth has yet to even see the beginnings of a peak; growth in the Middle Kingdom isn’t expected to slow for the foreseeable future, and investment and opportunities are to be had in every province and city.

In the next few weeks Dragon-Exports will be revamping its website; if you have any suggestions or inquiries, we’re always happy to help.

ChrisP.