the black China hand

(continued from last post)

After some time … Mr. H had us huddle together with the goal of hammering out a full-fledged company with marketing strategy, business development plan, profit schedule and product line as well … all with no input from the person with all the information: Mr. H. It was like that game SimCity … just make it up as you go. In essence, he wanted to create a "model" US focused company down to the Starbucks coffee they would serve and the American lawyer (me) in his employ.  His hope was that Big C would think that he has such deep experience in dealing with the US market that they wouldn't hesitate to give him the contract. Then once he had the contract he would have enough capital to go on and actually complete the contract.

After about an hour of this we broke for lunch and Mr. H asked me if I would be interested in the job. I said no. I also said that it would be best to take a different approach to getting the contract. I rather suggested that he forego creating this model company because any multinational worth anything will see right through his scheme (What I really wanted to say is that straight up lying is not going to cut it) and focus on the success, the experience and the knowledge he has had in his dealing in Asia and Europe. I told him that just because he has no experience dealing with an American client doesn't mean that they will not hire him if they feel he is qualified and he is qualified. Mr. H was non-plussed with my advice.

One last note (which gave me the title to the post) … at lunch I asked Mr. H how he was able to start (and become successful in) his company. His story was as eye-opening as his attempt to get the Big C contract. It also gave me insight into how many Chinese companies get there start.

He was hired right out of college to the sales department of a state-owned import-export company. After working there several years he decided he wanted to branch off on his own but he needed capital and clients. He solved that problem by basically poaching the clients he made working at the import-export company. As for capital: he basically ran his company from his desk in the import-export company drawing a salary, making use of the company's resources (cars, dinners, gifts) to fund his personal initiative. If company officials knew or cared they didn't make him aware of it. So with no risk (financial or legal) whatsoever, over several years, Mr. H was able to build his company until it could sustain itself without the "shield" that the import-export company unknowingly provided it.

At that point, he simply quit the job at the import-export company … registered his own with the relevant authorities, rented a space elsewhere and continued doing what he had been doing over the last several years. Ten years later he's in the running for what I perceived to be a multi-million dollar contract with a top US company.

Wow! I thought. I don't know much about starting a business in the US but it can't be that easy. Anyway, after the lunch I left. I haven't seen my friend since that time but when I do I'll most definitely ask if Mr. H was able to get the contract. And if he did my next post will be: Who Runs US Companies Doing Business in China? Are They Kidding?

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