Bribery tends to be thought of as a fact of life when it comes to doing business in China, but as this story in the Financial Times shows, you have to be careful who you bribe, when, and for how long. In fact, perhaps what this story really shows is that bribery is not as essential to doing business in China as many believe. As the following passage shows, knowing the right person is what is important in China or, perhaps more importantly, not going into competition with the wrong person.
The two budding entrepreneurs may have floundered anyway because of the objections of their only potential local rival, a state-controlled fireworks company. “The government-owned company attempted to kill our company,” says Mr Mao.
A good rule of thumb is that if you need to pay a bribe in China, it's likely you are talking to the wrong person. There is no substitute for a good business idea, good connections, and targeting a gap in the market not already controlled by local government. Bribery is the last resort for the stupid and the lazy.
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