Doing Business With China: Avoiding the Pitfalls

Cover......Page 1
Contents......Page 6
List of Exhibits......Page 9
List of Abbreviations......Page 10
Preface......Page 12
Acknowledgements......Page 13
Understanding China......Page 14
No simple solutions......Page 15
Understanding the "Chinese way"......Page 16
Getting on the ground......Page 17
Don't be evil......Page 19
Battling with the "Great Firewall of China"......Page 20
A new approach to China......Page 22
From container to content......Page 27
Pioneering spirit carried on by the son......Page 28
A long march in China......Page 29
Bumpy roads ahead......Page 31
Origins in a school-owned enterprise......Page 32
Strategic partnership......Page 33
Geographic expansion......Page 34
Restructuring and further diversification......Page 36
Zong Qinghou......Page 37
Formation of the Danone–Wahaha joint ventures (JVs)......Page 40
Non-joint-venture companies (non-JVs)......Page 44
Negotiations to gain a share of the non-JVs......Page 45
The public saga......Page 46
5 A Controversial Acquisition......Page 53
Robust in the making …......Page 54
Dare to be innovative......Page 55
Preludes to an acquisition......Page 56
Post-acquisition......Page 61
A 15-year cross-border love affair......Page 64
Standing next to global giants......Page 65
Details matter......Page 66
Mini-Case: Best Buy—A tough sell in China......Page 68
Partnerships......Page 71
Mini-Case: CICC—A true success?......Page 74
Mini-Case: Yahoo!'s Alibaba Dilemma......Page 78
7 All at Sea......Page 82
Strategic evolution and main turning points......Page 83
Organization, process, and management......Page 92
Risk management, governance and the regulatory environment......Page 99
The crisis......Page 105
What next?......Page 110
The extent of the problem......Page 111
Initial crisis management......Page 112
The quick fix......Page 114
In parallel, a search for strategic investors......Page 117
Legal issues......Page 118
The chosen option......Page 119
The public is still in the dark …......Page 120
A hidden problem......Page 122
The public announcement and media and market outcry......Page 123
The way forward......Page 126
The restructuring team......Page 127
Crisis management......Page 128
Debt restructuring......Page 133
Equity restructuring......Page 143
Rehabilitation and rebuilding......Page 151
Epilogue......Page 155
CITIC Pacific and the Yung family......Page 157
A wrong bet beyond needs and control......Page 158
A role model for corporate governance?......Page 159
The state bailout......Page 160
Pause for Reflection......Page 162
Mini-Case: CNOOC......Page 164
Mini-Case: Netease—the "Fantasy Westward Journey"......Page 169
Mini-Case: China Life......Page 173
Mini-Case: Gome: the Fall of China's Sam Walton......Page 174
The merit of "The Chinese Contract"......Page 181
Do the right thing......Page 182
Beware that "China issues" can turn into "crisis"......Page 183
A new imperative......Page 184
Develop a sense of continuity and direction for the future......Page 185
A few words of wisdom......Page 186
Notes......Page 187
Index......Page 200