China gets a Taste of ..... ? Buisness Ethics ?

http://news.yahoo.com/s/nm/20090714/wl_nm/us_china_australia_rio_7

Or lack of ethics. regardless I dought this will help the currant
State of the global Sand-box.
Some kids play dirty. Some play dirty Back.
Welcome to the globe China.

m1m

I wonder about this quote from the article:

""The Chinese government protects the legal rights of foreign firms, in accordance with the law," spokesman Qin Gang said.

"At the same time, foreign firms have the responsibility and obligation to respect Chinese laws and rules." ENd quote


When this Qin fellow says " in accordance with the law", I wonder what law he means?

What's to wonder?

He quite clearly stated "Chinese laws and rules".

So it's still win-win for them.

Many believe that this is all just retaliation for the Aussie's not signing the agreement without asking questions first.

China of course denies this.

Perhaps some of our members from "Down Under" can enlighten us further ...

KilrB,

There are supposed to be thousands of what used to be kids in jails in places like Turkey who broke the drug laws in those countries.

Why would you think that an American mfg can go into China and expect to do business under US law?

You are HERE! THIS IS OUR LAW! BREAK IT AT YOUR OWN RISK!

You come here from a country that allows use of MJ, and you get busted and jailed, so what is your defense? "I'm ALLOWED to smoke dope at HOME!!!"

The only law in International trade is one that has been signed onto by every country you do business in. Bribes help, too, in most cases, but HERE, they are SUPPOSED to be illegal, if you get caught, see Boeing.

Cheers,

George

George, I never said otherwise.

The question still remains as to whether there was any actual law-breaking done.

Anyone from Australia care to comment?

The deal is that Rio Tinto and BHP, our (and the world's) largest ore producers were playing hard ball with the Chinese on prices. This is an annual event made harsher this time because the Chinese wanted deeper price cuts that the ore guys wanted to give.

This year, for the first time ever, the Chinese negotiations were handled by a government body that nominally didn't even have any skin in the game. It turns out it was People's Army 101 stuff: An industrial association with one member: The PRC.

Since China is trying to convert as many American dollars into real hard currency (commodities) as soon as possible they signed the deal on terms more favourable to the ore producers. The pound of flesh they extracted was the arrest of the Chinese born executive on treason charges.

It seems that China is happy to send stronger and stronger messages that it is not to be f*cked with. Think of this as a warning shot across Australia's bows. I guess some one up north has decided that 20 million Aussies can pretty much be made to do as we're told.

After reading the article I figured it was just a move to increase China's position on the negotiations or at least thats what it sounds like to me.

From what I read somewhere, the Rio negotiator's sin was to collect public information and synthesize it to assist their negotiations. Adding two and two to make four is regarded as illegal..... I've also read that the chief negotiator is very well known as a highly principled operator who his friends and co-workers in his previous positions believe would be very unlikely to engage in bribery. There is also doubt whether bribery would be necessary because iron ore is a seller's market. Although iron ore is available from Brazil for instance, the Australian ore is better - less distance to travel for one thing - and so China has limited ability to put pressure on Australian miners by threatening to go to other suppliers. The newspapers say this arrest is approved by the people at the top of their government. Whether it is an attempt to put pressure on the Australian government or not is uncertain, but it is causing a stir in the political scene here. Kevin Rudd, our Prime Minister, likes to think he understands China, he speaks Mandarin and worked as a diplomat in Beijing for a while, he imagines he has a "special relationship" with the leadership. I think this event proves how wrong he is on both counts.
When Rio was in financial trouble and BHP-Billiton decided not to buy them, Chinalco, a Chinese mining company offered to buy Rio, but were turned down by the Australian government. There has also been the suggestion that
this is a response to that - a way of China telling Australia that we offend them at our peril.

- Mike -

I vote my government for putting business ethics straight throughout China!

Rumin Your funnin us now RIGHT? puttin business ethecs right throughout China............. HA HA!

Rumin said:

I vote my government for putting business ethics straight throughout China!

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IF that's what they are doing, they've got a long row to hoe ... more power to them.

I have my doubts this is the case.

Interesting article

You know what I think ? F - china!!! But more importantly F our own countrymen selling us out to them.Maybe it's hip to be marxist today but I'm not buying it! Oh wait I am because I can't go to any store and find anything not made by our little red freinds. I'm sick of it!

Yep

yzfr1pwr said:

You know what I think ? F - china!!! But more importantly F our own countrymen selling us out to them.Maybe it's hip to be marxist today but I'm not buying it! Oh wait I am because I can't go to any store and find anything not made by our little red freinds. I'm sick of it!

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