One of the biggest problems with China is information flow – or rather, the lack of it. This is particularly true in Beijing, where red tape is rife and knowledge non-existent.
Enquire about the procedure for setting up a company, or registering an ICP license, or heck – even asking for directions – and you will probably get a clueless response at best, or ten different answers at worst. Knowledge is a big problem in this country, and the effective dissemination of it an even bigger one.
Ultimately for every decision made in government, someone must know what’s going on. But a huge problem with this middle kindgom is that too many laws still remain subjective – and a huge part of the government bureaucracy depends upon Guanxi: personal relations between those in power and those who need favours. The result of this is that for any decision made, an exception is generally possible, and for any new law or legislative amendment issued, you can be sure there are ways around the problem… if you knock on the right doors.
One week ago a new directive was issued in Beijing: businesses must now be registered at commercial addresses only. Residential / mixed-residential are no longer accepted. Whilst this is reasonable (in-line with overseas practice), such legislative changes obviously have huge implications and impact upon the business sector in the city. Indeed, much of the cities businesses operate out of residential premises. What is necessary is a consultation period, followed by notification of the law and a grace period for businesses and property developers to adapt. The Chinese method though, naturally, is to issue a directive overnight, let the people ‘discover’ the law, not provide a grace period – and then as problems arise over time (“oh really? some business owners will be screwed?”), make amendments to the bill by fudging it slowly and making it more vague so that a few people in the relevant departments can deal with individual cases at their own discretion (e.g. – who gives the nicest gifts). This general problem is not uncommon: try to find solid information about any bureaucratic process here, and you will likely be none the wiser after 5 phone calls.
Welcome to politics 101, Chinese style.
The ‘information problem’ is deep rooted and not easy to fix : while China continues with its process of reform, it struggles also to maintain harmony across the country and keep the rural communities at bay. The Chinese government fears information flow – particularly those ideas that may lead to counter-revolutionary thought or compromise the existence of the ruling party. Freedom of speech is of course a big no no here.
But how about culture? Society in China has for centuries been very much confirmist: the young and inexperienced are supposed to learn from the wise and elderly. Until recently, innovation has not been encouraged and free thinking a definite taboo. There is no culture of sharing information, of discussing problems, of consulting over important issues that affect many people, or of confronting one’s superiors. People in China aren’t meant to talk back: the status quo is to shut up, and do as your told. And if you don’t know something don’t bother asking, ‘cos i’m not going to tell you!
I’d hate to think how much money is lost in the national economy due to inefficiences of information flow, but doubtless that figure is not small. If China wishes to continue growing its standing on the global stage, this is one serious problem that needs addressing. But the good news for Hong Kong at least is that, until then, that there is still value in conducting business in the SAR… and this looks to continue for many years.
The only question is… when will China eventually catch up?
