I have said this before but see it needs saying again. The US has a voluntary tax reporting system. Even hand written receipts can be official receipts in the US. China does not. We need to think more to get enough character in China.
If China used such a system, how much tax money would the Chinese government receive?
I think the answer would be around 25% which could lead to zero. So America is a different country with informal receipts and reporting our income by April 15.
Somehow America has enough character to support such a system largely based on trust.
China knows that it does not have that much character. I think we should take notice. Chinese business owners hire friends and relatives to work for them often without regard to qualifications as fear strangers working for them. We ought to take notice.
An Asia Director told me. “Jim, I know in the first 5 minutes if the guy is trustworthy.” Having focused on this issue for 20 years, I know our 2 hour interview can uncover quite a bit, but we never are sure a guy can pass the background check until he passes. We are forever surprised. Further, it is just those guys who fake it so well that make the most trouble in any business once they are inside. See this info graphic to understand more,
At this point we have a choice. We can throw our hands in the air and accept that our business will likely lie and cheat at will. The business sometimes will defraud customers and often will defraud us.
Should We Think Enough Character or Great Character?
OR, we can carefully vet each person and have an organization at least as honest as the one we have in the West. The possibility, is we will have one that is more diligent and innovative as well.
An ocean or a continent away is no time to have a less trustworthy organization.
The other piece I have enjoyed in companies I have led in China is that you can push the politics way down and then unwanted turnover goes way down as well.
The organization can consistently move forward and push down barriers as needed. An understandable organization that helps you understand China is what you need.