Wholesalers Peering Over the GFW
The free flow of information, and the ability to gather data at free will has always been a source of controversy throughout history. Some things are worth talking about; others are useless; and some information will put you in a highly compromised position if it were to leak out. None of us in the wholesale or retail industries are surprised by the idea that sensitive company information or strategies are worth keeping a lid on, but in a modern global economy that practically uses the Internet as a major artery supplying oxygen to the brain, it’s becoming increasingly hazardous to do business with entities or countries that are too restrictive with their policies regarding Internet usage, including the very basic ability to even connect to information that helps in the process of buying and selling.
We’re just doing our job!
Nobody would think that a country like China, which has dominated the manufacturing landscape for quite some time now, would consider a tactic like creating obstacles for their own customers, would come to pass… but unfortunately for citizens and the rapidly-growing expat community on the mainland (oddly enough, Hong Kong isn’t prone to such restrictions) there is a reality on the inside that most outsiders will never know. There is a “Chinternet”, as dubbed by many netizens, that is run by authorities who deem sites unsuitable at a whim, and shut them down for reasons that are neither disclosed nor explained later. In short, it’s an environment that leads to a very chaotic and messy system of e-commerce that lends itself quite nicely to scams and online fraud, since there is a general level of complacency and powerlessness from users who can’t even get logged on to top-performing global sites like facebook, YouTube, and twitter.
Of course, the blacklist of websites is a disappointingly long one when you realize that there are literally thousands of sites that have been banned and blocked since the inception of the Chinese Internet’s censorship policies. This is a condition that continues steadily today, with no clear resolution in sight.
Arguments about the politics and practices behind such policies and regulations are generally futile, especially with countries that have been historically unwilling to bend to any concessions that allow vulnerabilities of any kind. What then, should a wholesaler or retailer do? What measures can you take to keep from being the one who gets the plug pulled? It’s a reality all businesses operating in China must face, and the choices come from a very limited palette, whether the company is a small start up, or a multinational firm.
Understanding and communicating constantly with your trade partners is probably the most critical of steps to take, in any case. In the case of doing business with Chinese companies however, there’s a growing misconception that the majority of them are cheaters and swindlers looking for uninitiated newbies to rip off. Nothing could be further from the truth, as more and more Chinese companies and businesses are looking for ways to keep themselves on the positive end of the nation’s GDP, without resorting to doing things that will inevitably lead to poor relationships and a sullied reputation that will make them undesirable to anyone who is looking for opportunities down the road. This can easily be avoided by those who maintain a clear and effective channel for communication, and by establishing this early on in the relationship, there will be a mutual growth and understanding that benefits everyone involved.
The latest news about Google’s standoff with the CCP has shown us that there is not a way, as yet, to force a move upon the authorities, as long as they have the upper hand. While many applaud Google’s highly public and visible decision to back out of an online market as richly filled with potential as China’s, it has also shown the smaller, less influential players (let’s face it, Google is as influential as they get) to be a lot more diplomatic in their approach. While some cheer Google.cn‘s impending demise, and others lament it… the reality is that a host of Google-powered services may very well become fodder for the Great Firewall’s mechanism, to grind up and spit out in a continued push to exert itself upon the population. There’s no reason to let yourself become a heavily-censored and disavowed statistic, if it can be avoided.
It might be a bitter pill to swallow for now, but there is hope that things will stabilize over time, and eventual reintegration of a global network can be relied upon. The worst-case scenario being bandied about by some of the more pessimistic member s of the online community is a world without Internet, a Chinese intranet that excludes activity from the outside, and a loss of communication with everyone else. While this is a rather extreme and highly improbable outcome, it does raise some important questions regarding security risks to your company in an environment as authoritarian as China’s, and how best to avoid raisin the ire of the authorities, while still turning a profit with your overseas trade partners.
