Recently I have been spending a lot of time on the responsibility companies have when they outsource to ensure the integrity of their supply chain by investing in a solid quality control process, and recently this resulted in an editorial writer from the Wall Street Journal sent me an email as for my comments on the following:

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One of the most ordinary mistakes that Westerners tend to make in interacting with the Chinese is to not prepare enough ahead of time. This is a fatal mistake, as thorough preparation is key. In the very own words of Sun Tzu:

“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win”

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In China, there are three different social benefit schemes and their application depends on the employee’s “hukou”.

1. Urban Social Insurance – for Shanghai residents residing in urban areas
2. Township Social Insurance – for Shanghai residents residing in Shanghaisuburb areas such as Qingpu, SongJiang, NanHui, JinShan, etc.
3. Integrated Social Insurance – for non- Shanghai residents

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The most populous country in the world, The People’s Republic of China is today emerging as one of the major global economies. China is infamously known as a country of etiquette and ceremonies. The unique character of the Chinese is built on a strong sense of pride in their ancient history and culture. Understanding the basic Chinese cultural, ethical and business values is paramount to any organisation wanting to conduct business in today’s rapidly progressing China.

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