By Alexander de Neree

Despite the air conditioning, which was stuck the usual ‘are-you-nuts’ mode, the initial talks in Beijing between my client and a Chinese party looking for investment started warm enough. After the general introductions of both companies, the usual compliments where exchanged on how impressive the achievements of the companies had been.

Then my client started to explain what their intentions were with the Chinese company. A take-over would sum it up. His thinking was: "our money, our risk so that means our name and our concept." It makes sense but it was not what the Chinese side had in mind. They where thinking more along the lines of: "give us the money and let us expand our business on our own."

This point of view, at first glance, seems short sighted. There is no lack of money in China. Why, as a successful but still emerging Chinese business, not take advantage of the knowhow, expertise and worldwide known brand my client would bring to the table?

The answer followed after a copious lunch. If there is a Chinese business model and if it would have a motto, it would be ‘Speed and Scale’. All that seems to matter is to become the biggest before anyone else does. The winner takes it all.

After a take-over, naturally, the Chinese company would not be allowed to pursue competing investments. What if my client’s strategy - a sophisticated and rather complicated multi-brand concept - failed in China? They would have betted on the wrong horse.

Now that the cards where on the table, everybody was going home to consider the options. Back at my hotel I hailed a taxi to go to the airport. As soon as I closed the door, the driver turned around and gave me his name card. "Next time you are in Beijing, you call me." He said. "I will pick you up from the airport. I have many foreign customers." And off we went. He certainly had no lack of speed. Let’s hope the Olympics bring him the scale he’s aiming for.

Alexander de Neree, http://www.dnta.com.hk/home.html