Clean Up or Clean Out: 1 Year Update

Thursday, June 12, 2008 8:53

In my post Summer 2007: A Catalyst for Environment Change in China I predicted:

The summer of 2007, will be shown as a turning point in China’s development

and unfortunately for one client, I found out last week that I was right, and their proposed investment in a East coast city is still in a holding pattern after nearly 11 months.

It has been nearly a year since the reports of algae blooms in Wuxi began surfacing, and since that time there have been many who have questioned the longevity of the policies that resulted from that time.

If anything though I think we are seeing a tightening at all levels, and in a wider area that we initially thought. It is a process that has brought changes at many levels.

At the policy level SEPA was given a seat at the highest level, labor laws and visa policies have changed the fundamentals of HR, and investment policies have been introduced to spur higher quality investments

For some, this will be a welcome process that results in an economy better balanced, cleaner, and more sustainable. For others, it will mean policies that conflict with their goals, contradict the old ways – the old promises, and result in short term chaos.

The game has changed in many ways, and it is clear that this process is not finished yet.

So, for those of you who did not heed the warnings of last year, I suggest you reread the following posts again.

1300 Annecdotes Make it a Trend. Clean Up or Close Up

CSR Supply Chain Summit: First Session

If You Are Manufacturing In Beijing, Tianjin, or Shanghai. PAY ATTENTION

Want to Invest in Suzhou? Evaluate Your Impact

In China, as much as a solid market research report can do for you company, so will a solid risk assessment… and that is a step too few undertake.

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