The China Factor

Chapter 12China: Politics => The 5th P—The Geopolitical Dimension

The art of war is of vital importance to the State. It is a matter of life and death, a road either to safety or to ruin.

—Sun Tzu, The Art of War

Questions Answered in This Chapter

• Sometimes I will have been working a customer proposal for some time, confident that I am going to win the bid since I have more than satisfied all the customer requirements and then some. Then at the last minute, at the eleventh hour, I will lose the bid to my Chinese competitor, who was long out of the race and nowhere near my compliance capabilities. What is all that about? Why is that happening?
• I've read articles about Chinese companies being shut out of the United States because of security concerns. Is that still the case and are the allegations valid?

Chapter Outline

Politics: The Geopolitical Dimension

Nationalistic Philosophy—Venturing Out with Team China

A Partnership Approach

Countries with Resources

Ethics and Boundaries: Unfair Trade Practices

Security Concerns

1.  Why Do You All Hate Me?!
2.  Actions to Appease Concerns

If there is one primary differentiator or predominant success factor of Chinese emerging entrants it is their shrewdness in using political influence to achieve successful commercial results. This factor was a major learning point for us at Cisco—the power of this dimension often caught us by surprise. As a renowned Western company with a solid brand, we had not needed to use governmental ...