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Yes. That's how people like Elizabeth Holmes raise a billion dollars and gain a who's who board comprising of famous statesmen without any questions asked, how
by sfifs 8y ago
Yes. That's how people like Elizabeth Holmes raise a billion dollars and gain a who's who board comprising of famous statesmen without any questions asked, how young son in laws become more powerful than career diplomats and how C- suites always get other C-suite jobs.
At least this Chinese version in the electronics is more democratic and let's the little Chinese startup try out things quickly and get into a full commercial relationship if things succeed. I understand American companies used to do this early on but eventually rent extraction mindset took over.
But this behavior extending up into actual corruption is very much a current problem for that country
- forapurpose 8y agoDid you think that someone was criticizing Chinese culture and it needed defending? And the defense is, there is some degree of corruption based on relationships in other places? Every place sometimes has bad weather too; does that mean the weather is the same everywhere? And does the fact that there is also bad weather in Rome have any bearing on the weather in Edmonton or help the people there? Addressing guanxi seriously: My understanding is that guanxi works against opportunity and the free market; not anyone can get a loan at the bank, for example; instead it requires personal relationships. Economists I've read said the lack of arms-length commercial relationships hold back economic development and opportunity in China, but that was written maybe 20 years ago and possibly things have changed. I do know that Communist Party connections, and particularly connections to the 'royalty', the families of leaders, are highly valuable and are at least sometimes seen as necessary for success in business.