AUM Public Affairs Forum

Alabama Public Affairs Forum
"Doing Business with China and India: Opportunities for Alabama"
by John Martin, Spring 2006 Doing Business in China
David Lai

Lai is Associate Professor at the USAF Air War College.
Is everything made in China?
Chinese government features political stability and economic opportunity.
United States and China relations identified as constructive interaction.
Power fluctuation and overall transition concerns Chinese economists.
The Chinese role in world economics, according to an international consensus, should be a responsible shareholder.
Taiwan and China conflict is long lasting and damaging.
Chinese political system encourages credible peaceful development in the global market.

James A. Nathan

Nathan is the Khalid bin Sultan Eminent Scholar at AUM.
Chinese culture reflects Confucian influence, where each idea matters.
Chinese value moderation, hard work, character, and respect.
The Chinese business hierarchy of power has remained a key element in its traditional culture.
Mianzi, or face/personality, and Quanxi, or one’s personal relationships, are two leading aspects of proper Chinese business etiquette.
Privatizing emotions and maintaining a consistent tone of voice are essential for conducting business in China, while impatience and anger are strongly discouraged.
When exchanging business cards with a potential consumer in China, always show interest and present cards with two hands, never just one.
Since gift-giving occurs on multiple occasions in the Chinese business sector, preparation is fundamental.
Time and group decisions distinguish 21^st century Chinese business.

Y.T. Tsai

Tsai is credited with the first Chinese corporation in Alabama, an automotive parts distributor called Regitar.
Montgomery, AL has a prime location and sufficient resources to conduct international business with China.
Three main factors distinguish Chinese business: negotiation, investment, and risk acknowledgement.
The 21^st century brings more progressive and open-minded changes to China’s economy.
Currently, the exchange rate for an American dollar in China is $7.98 and continues to decrease.
Two main issues facing business in China is the price increase of plastics and the rise of labor shortage.

Dajun Tang

Tang is the Foreign Economic Trade Representative from the province of Jiangsu, located in southeast China.
Although Jiangsu comprises only 1% of the area in China, it contains 74 million people.
Jiangsu’s average growth rate stands at 12%, totaling 10% of the national economy.
Over 75,000 United States’ companies are located in Jiangsu, grossing 20 billion American dollars.
Jiangsu’s top exports include textile, auto parts, toys, electronics, and hardware, while its imports from the western hemisphere are beans, software, machinery, timber, and plastics.
The most successful American companies in Jiangsu are Saks Fifth Avenue, Ebsco, and Intergraph.

Doing Business in India

Amit Gupta

Gupta is Associate Professor at USAF Air War College.

India is considered a robust democracy in which three primary cultures flourish: French, Malaysian, and Indian.
The Indian legal system disenfranchises its lower class.
The average median income for Indian-Americans in the United States is $64,000.
Improvement/assistance to Indian’s infrastructure should encourage outside interest in the country.
Technology transfer between the United States and Indian has consistently increased due to the specialization of satellite imaging and solar power.
Indian airlines, automobile industries, and students seeking an American education need to be acquired by the United States before another country seizes the opportunity.
A cheap and creative market is available for Indian medicine.
Sports, department store development, and environmental cleanup offer plenty of business for outside countries, yet they remain to be conducted.
From an overall standpoint, Indian needs to drastically recover its infrastructure and a corrupt bureaucracy.

Fuller

Fuller is the creator of a software engineering company that provides computer technology solutions.
A connection in India provides Fuller’s company with computer imaging, search engine optimization, and specialized medical content.
By outsourcing to India, Fuller has gained cheap, efficient labor.

Srinivas (Java) Javangula

Java is the International Agricultural Development Specialist at the Alabama Department of Agriculture and Industries.
India’s most successful agricultural industries are dairy products, meat, and marine fisheries.
The largest livestock population in the world exists in India.
Low cost labor force, agro-climatic conditions, and access to significant investments highlight India’s supple conditions.
While the government strives to develop agri-zones, mega food parks, and investment initiatives, tariffs and legislation deters agricultural progress.
High specialization, efficient technology, and management investment and growth are emphasized in the Indian economy.