China syndrome

Chinese manufacturing and other companies don’t believe they’ll be doing business with the West in a few years, so they’re flagrantly ripping off their Western partners to get a few last, quick bucks. It’s a similar situation to Russia in the 1990s, says international attorney Dan Harris, writing on the China Law Blog: “You have to understand that for most Russian companies there is no long term. They are used to the Soviet Union where the rules and the laws constantly and unpredictably changed to their detriment. They do not believe they will be able to operate freely five years or even one year from now. So though you see them as having irrationally sacrificed massive long term gains for much smaller short term rewards, they see themselves as having quite rationally grabbed what they could while it was still there.”

How to Conduct Business with Chinese Companies That See a Dark Future Dan Harris, China Law Blog. (Thanks, Cory!)