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I simply can't trust or rely upon a country where laws don't matter. Sure, in the United States, money buys you better representation, as it does everywhere. Bu
by seibelj 11y ago
I simply can't trust or rely upon a country where laws don't matter. Sure, in the United States, money buys you better representation, as it does everywhere. But in China, Russia, etc. being disliked by the government can be a death sentence.
Start your company in China, fine. You'll move to a western country eventually, if you get big enough, and China doesn't reform. You simply can't trust a society where the laws don't apply equally. There isn't an Apple, Google, or Microsoft coming out of China. Instead, you get Ali Baba and Weibo that clone American startups.
I won't consider China a threat to American innovation until they get a true rule of law, democracy, and intellectual property rights. This is a tall order that won't be fulfilled anytime soon.
- Canada 11y agoAre IPR and democracy actually as important as the rule of law here?
- seibelj 11y agoIP rights are the least important. I strongly believe that a protocol needs to exist to expel the top government leader(s) using non-violence to prevent corruption. Any system that exists without transparency and checks & balances ultimately results in corruption. FIFA is a perfect recent example.
- gozo 11y agoI think you're illustrating quite well how people don't get China. Just because you don't like certain things doesn't mean it won't be overshadowed by other realities. The US is dysfunctional in many ways too, but are still a leader in some areas.
- seanmcdirmid 11y agoThings happen, even in the most craziest places. And China isn't really that crazy of a place. It is only a matter of efficiency and stability.
- tiatia 11y agoAs an American living in China, I agree with you 100%. A few points: - I would not consider Taobao a clone. - The US has its advantages but also its disadvantages. Funding (e.g. SBIR grants) is very corrupt in the US (corrupt in the Latin sense, meaning not necessary meaning bribes but personal relationships. I could tell stories, Lordy Lord). - "true rule of law" The true rule of law is a question of money in the states. For the average citizen the law has become more a risk than an asset. http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/1594035229 http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/...
- seanmcdirmid 11y agoVenture capital or a bank loan in china for your biz requires guangxi galore, they are not at an advantage over the USA. Rule of law is very strong in the U.S.; but ya you need to afford a lawyer. In contrast, a lawyer cannot help you much in China if the government has already made up its mind. The level of dysfunctions in either system differ by an order of magnitude.
- rahimnathwani 11y ago"Venture capital or a bank loan in china for your biz requires guangxi galore" What makes you think that?
- seanmcdirmid 11y agoBecause that is what I've been told by all my friends trying to get VC or bank loans for their companies. VC is always based on guanxi, sure, but banks will only lend to SOEs or big private companies, there isn't much credit for small private companies.
- tiatia 11y agoI don't know the Chinese VC-Scene well but I know a few "Western" VCs in China so I can't make a judgement. It is my impression that it is much easier to get money in China than in the states, at least until recently. On the other hand: Often you get money from non VCs and VC is not very in the nature of a true Chinese. Chinese prefer M&A (with the focus on the A). How much is it to buy everything? They don't want any long term partner and they want everything based in China.