The Chinese Courts Might Get Us Just What We Deserve

I want to tell you a real though altered story to give some perspective.

An American company in Beijing had a company with a contract to sell automation equipment to a Chinese company in Ningbo.

The Ningbo company had placed a large down payment. The Americans were behind on delivery and then tried to get Ningbo to accept the machine.  It had glitches in its function that required a full time person to manually reset each time it got stuck which was every few minutes.

The Chinese company took them to court in Ningbo, and the Americans ignored for two reasons:

1. They said Ningbo was corrupt, and they do not care what they say. They felt they were safe in Beijing.

2. They had no cash flow as were a struggling start up in China, so felt this company could not get money out of them either way.

The Americans got another order and when the cash pre-payment came to their bank account, it was immediately frozen before they could take it out in Beijing.

The Americans then hid the machine, locked the doors, and left.  Some owners kept working in China while another left.  The Korean company never got their pre-payment back.  The Ningbo company did not get their machine, but did get the cash which partly offset their loss.

I think the Americans got what they deserved, but the Koreans and the Chinese both got cheated. At least the Chinese got some of their money back. Justice was served despite what the Americans thought.

I hope we show a little more respect to the Chinese goverment and legal system. I also hope that Westerners who operate this way do not prosper.


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Posted in: Being the Right Person, China, Decision Making, Government Issues, Leadership

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