Can China become a likeable, trusted power?

China is living in a hostile external environment – mostly of its own making.

Recent aggressive rhetoric plus trade restrictions on Australia and border battles with India are leading examples of how China is projecting itself and the world is worried.

But China also means to become moderately prosperous by 2035. It will need to overcome global misgivings if this is to be achieved.

Andrew K.P. Leung is an independent China strategist and has written about this for the South China Morning Post.

Here are 10 steps China should take, according to Leung

First, get the message firmly across that China is neither able nor willing to unseat the US as the global superpower. China cannot compete with America, which has a military presence in 80 countries and whose military expenditure is 38 per cent of the global total – more than the next 10 countries’ combined.

Second, cut out the wolf warrior rhetoric, whether in diplomacy or on social media.

Third, work with the US and the World Health Organization to end the global pandemic.

Fourth, actively cooperate with the Biden administration on climate change.

Fifth, conduct regular joint naval patrols with the US forces in wider waters of the South China Sea.

Sixth, set aside territorial disputes and work with neighbouring countries in the South China Sea on the joint management and exploration of natural resources, including fisheries, habitats and deep-sea energy resources.

Seventh, embrace free and fair trade. For starters, seek to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which a Biden presidency may wish to join too.

Eighth, China should help North Korea become a rising economic powerhouse like Vietnam.

Ninth, reform the Belt and Road Initiative. Make it more transparent and include more participants.

Tenth, meet more milestones on the path to reform and opening up, whether or not they have been set in the 14th five-year plan – including issues like market reciprocity, state-owned enterprise subsidies, transparency, rule of law, human rights and goals including technological self-reliance and quality growth.

Leung writes that China has vowed to double the size of its economy and become moderately prosperous by 2035.

China is unlikely to act on Leung’s 10 suggestions – but to move on some would send positive signals to the world.

Andrew K.P. Leung is an independent China strategist. 

 andrewkpleung@gmail.com

7 fatal mistakes in Indian market entry

India is super exciting, vibrant, colourful and amazingly friendly. People are accessible and available. Deals can be signed and MOU’s are much loved. The population of over 1.2 billion is soon to become the largest in the world and is soon to overtake China.

While India will probably not be “another China”, it is becoming a global power in its own right and an economy that will soon not be too far behind the USA and China.

So, it makes sense to be there real quick, yes?

YES be there – but watch out for these fatal mistakes

  1. Trying to do the whole country at once will exhaust and confuse you – even Indian companies take years to cover it. Select your best one or two points of entry and the rest will follow.

2. Going in quick on price might seem exciting – but who is actually winning out of this deal? You become a disposable and cheaper provider – so your future is very short term.

3. Appointing the first person who says “yes” seems exciting and then nothing happens. Later you might work out every Indian says “yes” – in their culture, they have to. It takes time to find a “yes” that is real.

4. Focusing on injustice, slums, inequality and the Indian way might be something you think is important but of course it is pretty offensive to your hosts. Sure the traffic is diabolical, but there is no benefit in whinging.

5. A short time frame such as one year is a real killer for Indian market entry. It needs to be a minimum 3 years. If you cannot give it time, go somewhere else.

6. Going it alone sounds brave – but is stupid and wasteful. India is all about relationships and collaborations. And you will need “hand holding” by someone who knows the ropes.

7. Ignoring cultural differences is a recipe for misunderstanding and disappointment. Cultural differences between India and the west are massive – and what we have in common is also massive. You need to understand them both.

Melbourne set to attract more movies and digital games creativity – maybe Bollywood too?

Great move by my home town, Melbourne – Victoria’s thriving creative industry received a massive boost with the State Government announcing a record investment of $33.8 million in the 2020-21 Budget in local screen productions to allow more global and local projects to be shot here.

This includes international film Blacklight which started shooting in Melbourne last week. The Liam Neeson feature is one of a number of productions currently shooting in Victoria while adhering to strict COVIDSafe protocols.

Some $19.2 million will be allocated to attract international and interstate screen projects through a new Victorian Screen Incentive. This incentive will target physical productions, visual effects, animation, post-production and, for the first time, digital games projects.

There will be $4.7 million for the development and production of local content across film, television, online and games and $8.6 million to continue Film Victoria’s successful local production investment and industry and skills development programs, on top of Film Victoria’s ongoing operational funding.

As Docklands Studios Melbourne prepares to break ground on its $46 million sixth sound stage, $1.3 million will be allocated to create a trade and technical hub close to the studios for screen crews and support businesses.

Melbourne is a creative city – so if you are a creative, time to take a look…

For more information, visit https://www.film.vic.gov.au/funding/incentives/

To learn more about Victoria’s thriving digital games sector, visit https://www.invest.vic.gov.au/opportunities/technology/digital-games

Contact us to explore opportunities to be a part of Victoria’s thriving creative industry.

India and Australia have a trade relationship that can grow

A great source of information about Asia is ASIALINK here in Australia – and for those interested in India their INDIA STARTER PACK is valuable.

Australia’s economic relationship with India has expanded significantly in recent years – particularly exports of minerals and energy, as well as our provision of education services to tens of thousands of Indian students.

We now have the basis to do more. It will take some marketing creativity and a realisation that brand “Australia” goes down well in India.

Two-way goods and services trade between Australia and India totalled AUD 27.4 billion in 2017. Major Australian exports to India included coal (AUD 9.2 billion), education-related travel (AUD 3.4 billion) and vegetables (AUD 1.38 billion). Our main imports from India were refined petroleum (AUD 1.6 billion), medicines (AUD 335 million), pearls and gems (AUD 274 million) railway vehicles (AUD 199 million). 

The total value of Australian goods exports to India for 2017 was AUD 15.7 billion, making it our fifth-largest goods export market. We exported an additional AUD 4.4 billion in services to India, a figure primarily made up of education-related travel services and other personal travel.

Time to review your India market entry strategy? Let’s talk.

7 ways “culture” can be what helps or hinders westerners and Indians working together

Disputes over contracts and plans

Most westerners place a high importance on rules, laws, regulations and contracts. They are almost “set in stone” and apply without exception. Most importantly, rules come before relationships – even if it is a family member. Variations to agreement cause confusion and even anger.

In Asia and especially in India, there are all the rules and contracts and so on, but the common view is that each circumstance and each relationship is different, so the rule may or may not apply. It becomes a moment by moment thing. Variations to agreements are taken for granted and fully expected to happen.

How does this work in business? For many westerners, any change to a contract becomes a time to consult the lawyers and can be a relationship ending event. For Asians, change is expected and accepted.

Why western individualism hits the collective wall

Even children are encouraged to make their own decisions in the west – including on courses, careers and most definitely on choice of partner. Under individualism, you make your choices and must take care of yourself – and in some countries this is harshly applied, in others there is a more compassionate welfare safety net.

Most Asian families make decisions for their children, including courses, careers and partners. The view is that the group – the family and so on – is more important than the individual. In return, the group looks after any member at time of need.

How does this work in business? An American is ready to sign the deal now – but the Asian partner wants time to talk to colleagues and ensure a group decision. Pressure versus group consultation.

Why westerners misunderstand indirect communication

In the west people can work together without having a good relationship and direct communication is highly valued. In fact, any indirect communication – going around the bush – creates mistrust in the other or is simply missed by the westerner. They just want the facts – a simple “yes” or “no” will do.

In India there is an overlap between work and personal life and they choose indirect communication because their major concern is to keep the relationship. Being direct such as saying “no” is difficult.

How does this work in business? People in the west keep work and personal lives separate so are less likely to socialise with Asian colleagues – or any colleagues – after work.

Why some hide face, while others save it

Most westerners make a big effort to hide emotions – this varies of course. They see “reason” as more important than “feelings”, so they often keep thoughts to themselves.

In Asia, spontaneous emotional responses can break out and this often surprises westerners. Saving face can become the most important thing.

How does this work in business? An Asian colleague will give or expect some emotional outbursts but is also looking for the following harmony.

Why becoming someone clashes with born something

Westerners value people by what they do or what they have achieved. Performance is king, no matter who you are.

Asian culture generally values people for who they are, so power, title and respect matter greatly, but of course the person should behave according to this status.

How does this work in business? Westerners will often “high five” with everyone including junior colleagues and everyone gets in to share the celebration, while in Asia the leader might receive most of the credit.

Why order dominates the western mind

“Order’ is highly prized in the west. That means doing things on schedule, being punctual, sticking to your plans and a “time is money” view of most things. They react badly to any disturbance to the smooth schedule.

“Time” is viewed differently across Asia, with the past, present and future seen as interwoven and so plans and commitments are more flexible.

How does this work in business? This different view of schedules and time causes relationship breakdowns and can see the end of the deal.

Why westerners feel in control of everything, including climate change

“Control” is big in the west – to the extent they see people as controlling nature or the environment, down to how they work with teams and with the organisation. Conflict is fine so long as the job gets done.

Asian cultures see nature and the environment more as controlling them – events, circumstances are in control more than the team. Conflict is avoided even at the expense of timely delivery.

How does this work in business? Westerners will need to give more reassurance and feedback to their Asian teams and setting clear objectives becomes paramount for both sides.

Adapting via Cross-Cultural Understanding Courses

These cultural differences can have big impacts, but with learning and adaptability, both sides can find they quickly work well, understand more and feel better about how things are going. Cultural understanding provides quick and positive results. Cultural ignorance can be the deal breaker. My “Cross-Culture Understand” training program can set you on the right course – whether an Indian wanting to engage the west, or westerner wanting to engage India.

Stephen Manallack speaking at the Australia India Address

Why do westerners sweat so much over plans and deals? It’s all about “culture”

Why do westerners fret so much over contracts and project plans? Why do they become angry and agitated if things have to change? And why do their relationships end when the other side has a different view of planning? Why do westerners and Asians struggle to understand each other?

The answer can be found in one word – culture.

In writing about cultural differences, I do not mean to give offence, criticise, imply one is better or create division – my aim is understanding.

For Asia and the west, culture can be “make or break” in business, yet most of us are not even aware that the way we think is largely determined by our culture. This lack of awareness is poor preparation for global business and trade, where knowing culture is king.

With Asia, culture becomes complicated for westerners and many give up on it.

With India, cultural understanding becomes even more complicated, because it is a land of many cultures, different ways of seeing the world and is rich in diversity. For me, this is one of the great attractions of India. It is also why I go to Asia a lot. But for others it can become a deal breaker.

So, how can we bring an understanding of cultural differences to our business and trade negotiations between westerners and Asia? How can we find acceptance and understanding even when there is difference?

That answer can be found in two words – understanding culture.

Why contracts and project plans end in disputes

Most westerners place a high importance on rules, laws, regulations and contracts. They are almost “set in stone” and apply without exception. Most importantly, rules come before relationships – even if it is a family member. Variations to agreement cause confusion and even anger.

In Asia and especially in India, there are all the rules and contracts and so on, but the common view is that each circumstance and each relationship is different, so the rule may or may not apply. It becomes a moment by moment thing. Variations to agreements are taken for granted and fully expected to happen.

How does this work in business? For many westerners, any change to a contract becomes a time to consult the lawyers and can be a relationship ending event. For Asians, change is expected and accepted.

Why western individualism hits the collective wall

Even children are encouraged to make their own decisions in the west – including on courses, careers and most definitely on choice of partner. Under individualism, you make your choices and must take care of yourself – and in some countries this is harshly applied, in others there is a more compassionate welfare safety net.

Most Asian families make decisions for their children, including courses, careers and partners. The view is that the group – the family and so on – is more important than the individual. In return, the group looks after any member at time of need.

How does this work in business? An American is ready to sign the deal now – but the Asian partner wants time to talk to colleagues and ensure a group decision. Pressure versus group consultation.

Why westerners misunderstand indirect communication

In the west people can work together without having a good relationship and direct communication is highly valued. In fact, any indirect communication – going around the bush – creates mistrust in the other or is simply missed by the westerner. They just want the facts – a simple “yes” or “no” will do.

In Asia there is an overlap between work and personal life and they choose indirect communication because their major concern is to keep the relationship. Being direct such as saying “no” is difficult.

How does this work in business? People in the west keep work and personal lives separate so are less likely to socialise with Asian colleagues – or any colleagues – after work.

Why some hide face, while others save it

Most westerners make a big effort to hide emotions – this varies of course. They see “reason” as more important than “feelings”, so they often keep thoughts to themselves.

In Asia, spontaneous emotional responses can break out and this often surprises westerners. Saving face can become the most important thing.

How does this work in business? An Asian colleague will give or expect some emotional outbursts but is also looking for the following harmony.

Why becoming someone clashes with born something

Westerners value people by what they do or what they have achieved. Performance is king, no matter who you are.

Asian culture generally values people for who they are, so power, title and respect matter greatly, but of course the person should behave according to this status.

How does this work in business? Westerners will often “high five” with everyone including junior colleagues and everyone gets in to share the celebration, while in Asia the leader might receive most of the credit.

Why order dominates the western mind

“Order’ is highly prized in the west. That means doing things on schedule, being punctual, sticking to your plans and a “time is money” view of most things. They react badly to any disturbance to the smooth schedule.

“Time” is viewed differently across Asia, with the past, present and future seen as interwoven and so plans and commitments are more flexible.

How does this work in business? This different view of schedules and time causes relationship breakdowns and can see the end of the deal.

Why westerners feel in control of everything, including climate change

“Control” is big in the west – to the extent they see people as controlling nature or the environment, down to how they work with teams and with the organisation. Conflict is fine so long as the job gets done.

Asian cultures see nature and the environment more as controlling them – events, circumstances are in control more than the team. Conflict is avoided even at the expense of timely delivery.

How does this work in business? Westerners will need to give more reassurance and feedback to their Asian teams and setting clear objectives becomes paramount for both sides.

Adapting

These cultural differences can have big impacts, but with learning and adaptability, both sides can find they quickly work well, understand more and feel better about how things are going. Cultural understanding provides quick and positive results. Cultural ignorance can be the deal breaker.

India’s Reliance second to Apple in “FutureBrand Index”

Who said India could not produce strong brands?

Billionaire Mukesh Ambani’s oil-to-telecom conglomerate Reliance Industries has been ranked second biggest brand after Apple on the FutureBrand Index 2020.

“This year’s highest entrant at number two, Reliance Industries excels on every attribute,” FutureBrand said, releasing its 2020 Index.

ril

“One of the most profitable companies in India, Reliance is, very well respected and is seen as behaving ethically as well as being associated with growth, innovative products and great customer service. People have a strong emotional connection with the organisation,” it added.

FutureBrand, a global brand transformation company, said part of Reliance’s success could be attributed to Mukesh Ambani’s recasting of the firm as a one-stop-shop for Indians.

“The chairman built on the existing petrochemicals business, transforming it into a digital behemoth designed to meet every customer need. Today, this company is engaged in several sectors including energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Now that Google and Facebook are taking equity stakes in the firm, we may see Reliance jostling for the top spot in the next Index,” it said.

Britain’s invasion of India, the power of the Muslim rulers and Ayodhya

Indian PM Modi’s emotion in Ayodhya, “British” rule and the power of the Mughals – how can we understand what is happening today?

moditemple6

To understand modern India and even PM Modi, I feel we need to turn to Swami Vivekananda – who said:

swami-vivekananda

We talk about the British conquering India and this defines today, but as William Dalrymple writes in The Anarchy, the seizing of power in India was done by a private company – probably the first outsourced act of violence in history.

That company was the East India Company and as Dalrymple writes: “The Company’s conquest of India almost certainly remains the supreme act of corporate violence in world history.” Worth reading that line again!

It is hard to know and even relate to how my Indian friends feel about the two major invasions of their country in recent centuries – first, the Mughal empire and then this East India Company.

Which brings me to Ayodhya.

moditemple4

Indian Prime Minister Narendra Modi sprinkled sacred water and flowers into a small hole on Wednesday, part of a ritual marking the start of construction of a grand Hindu temple in the city of Ayodhya.

With emotion Modi said: “Today centuries of waiting are over.” For many of my Indian friends, this was a shared emotion.

Western media persists with the line that all this is “Hindu nationalism”. I am not so sure.

It will be up to Indians – and not to people like me or the media – to define what is happening under PM Modi and what the national motivation is. Most change is painful at first but in lifting people out of poverty and restoring confidence, he has brought great optimism to India.

Now India faces another struggle – Covid 19 – which makes arguments about history seem like something of an indulgence.

From our hearts to yours, we wish India success in this life and death battle against the virus.

With Covid19 we are seeing the vast and deep truth of that classic Indian saying Vasudhaiva Kutumbakam – meaning “the world is one family”.

vasudhaiva2

India attracting investment during the pandemic and USA is the largest trading partner for a second year

Since March, India has received over $20 billion of new investment from Western companies despite the pandemic.

Thanks to John Bell, Client Relations, Amritt, Inc, Malibu California for this information.

Here are  four examples of significant improvement in bilateral trade between the two countries (India and USA) during the pandemic:

Dozens of large and small organizations depend on Amritt as their trusted advisor to succeed in India, whether selling, sourcing or leveraging talent.

You can Email John Bell at johnb@amritt.com

 

Start your India journey with Chennai – and start your India outsourcing with Sundaram

Tamil Nadu has the second-largest economy in India and by area is the fourth largest state of India. The capital is Chennai and over 60% of the state is urbanised.

Chennai is one of my personal favourites – doing business there is good and there is plenty of tourism and activity to keep life interesting.

sundaram-financejpg

One of the leading firms is the Sundaram Finance group, led by Managing Director TT Srinivasaraghavan. The firm has a code of ethics and behaviour which it calls “The Sundaram Way” – an inspiring document worth looking up.

Within the Sundaram group is an outsourcing and business consulting arm, Sundaram Business Services (SBS).

SBS is strong in Australia and provides services to many leading brands, including a major superannuation outsourcing practice.

SBS is led here by Harish Rao who pioneered Australia’s superannuation outsourcing to India (pictured below, Harish Rao has won several awards in Australia).

IMG_0212

As a southern India state, it is highly courteous, very friendly, conservative in approach to business and a good starting place to find a trusted business partner.

Tamil Nadu has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto components, engineering, pharmaceuticals, garments, textile products, leather products, chemicals, plastics, etc.

chennai4

It has a well-developed infrastructure with an excellent road and rail network, three major ports, 15 minor ports, and seven airports across the state providing excellent connectivity.

As of February 2020, the state had 54 formally approved Special Economic Zone (SEZs), 50 notified SEZs and four with in- principle approval SEZs and has total 40 exporting SEZs.

For most of you, Chennai and the state of Tamil Nadu make a good starting point on your India journey.