Editorial: Think before venturing into China

Ever since the rise of multinational corporations in the 1960s, many have loudly proclaimed the motto "businessmen have no mother countries" (商人無祖國), turning the slogan into a religion for many. Driven by this trend, many Taiwanese businessmen have come to believe they must worship this phrase too. Otherwise, they would lag and be unable to fulfill their business ambitions, so they believed.

Little do they know that the slogan was propaganda dreamed up by major international capitalists to help them expand their businesses to all corners of the world. The motto was intended to avoid accusations of economic invasion by those leaning toward left-wing factions during the Cold War era. It resembled communist slogans like "workers have no mother countries" and "proletarians of the world unite" in that they were all politically motivated.

According to Vice Chairman of the Mainland Affairs Council Chen Ming-tung (陳明通), Taiwan's policy of "no haste, be patient" (戒急用忍) may be relaxed in May of this year. Foreseeably, the pro-China Taiwanese and Hong Kong businessmen will then head a wave of business relocations to China. Predictably enough, they are bound to use slogans such as "capital knows no national boundaries" and "businessmen have no mother countries" to mislead medium and small-sized businesses. Against a backdrop of economic troubles, many businessmen will likely become blinded by greed and short-sightedness and try their luck in China.

We believe that Taiwanese businesses' relocation to China or establishment of branch offices in China must be based on sound business needs. Otherwise, why bring business resources to the Chinese market where the companies are unfamiliar with the social environment and the legal system is primitive? China should not be seen as some wonder drug to cure business problems. Times will be even tougher for those who venture into China just to follow the pack. Without well-though-out plans, failures are bound to follow, creating even more business crises and security risks.

Actually, many businessmen investing in China share one sentiment -- there may be ample opportunities in China, but there is no money to be made. Taiwanese businesses do not measure up to other multinational corporations in the Chinese market in terms of their understanding of market conditions, capital, technologies and distribution. Therefore, many Taiwanese businesses rely on connections to win contracts. This means, of course, additional costs for Taiwanese businessmen.

A closer examination reveals that many Taiwanese businessmen doing miraculously well in China rely on illegal means such as tax evasion or tax fraud. These practices do not warrant our envy. Ill-gotten gains only help to form barriers for legitimate long-term business development. Asia learned this lesson the hard way after the 1997 financial crisis. Having businesses feed on special perks and privileges is akin to becoming addicted to opium. The companies will gradually lose competitiveness, destroying their future as a result.

All slogans like "businessmen have no mother countries" sung by the major international corporations are backed by powerful political powers. Before Taiwanese companies march into China en masse, they need to make pragmatic evaluations in accordance with their own needs and work closely with the relevant government agencies, so as to ensure these businessmen's political rights won't be trampled upon by the Chinese government. Do not be fooled by China's unificationist propaganda or sing along with the absurd tunes Beijing plays. Do not cast away your real "mother country." This is how you protect your long-term interests.