Shanghaied – Why Foster’s Could Not Survive China

On November 6th, Ms Kathryn Thomas, Deputy Director, Victoria State Office, Department of Foreign Affairs and Trade (DFAT) and The Honourable Justice Howard Nathan launched of the new book by Deakin researcher, Dr Mona Chung: Shanghaied – Why Foster’s Could Not Survive China*.

The book, an extension of Dr Chung’s PhD, looks at the pitfalls for unwary Australian companies attempting to do business in China.

More importantly, it provides assured guidance on how to avoid them.

Justice Nathan noted that unlike many other books converted from PhD’s, Mona’s was “very readable”.

“To start with,” he said, “it intrigued me why Mona would do such a study on a company that sells alcoholic drinks. Of course the book is not about the company or the drinks, it is about how do to business in China.

“She used Foster’s material as a case study to illustrate the cultural differences in doing business in China.

“There are many interesting stories in the book.”

Kathryn Thomas noted that the book came at a most opportune time.

“In late 2007 China overtook Japan as our largest trading partner and while Chinese economic growth is moderating, it is expected to remain robust,” she said.

“China will continue to be a key market for Australian commodity exports.

“Australian investment in China is also growing and China now ranks 14th as an investment destination for Australian investment abroad. China offers a large market and a fast growing economy, and continues to improve its overall investment climate through regulatory, legal, financial, and taxation reforms.

“In close consultation with Australian industry, Australia is seeking improved access and stronger protections for investment in China through the Australia-China Free Trade Agreement negotiations.

“The bilateral relationship has been strengthened by a host of recent high-level visits. For example, a few weeks ago Australia hosted the third meeting of the Australia-China High-level Economic Cooperation Dialogue at Parliament House in Canberra.

“At that meeting, the two countries exchanged views on the impact of the global financial crisis on their respective economies, and held a wide-ranging discussion on how best to take forward economic cooperation.

“The discussion covered bilateral trade and cooperation in clean energy and energy security, minerals and energy resources, transport and infrastructure, two-way investment and respective economic reform agendas.

“Looking to the future, the two sides agreed that complementarity and market confidence will help ensure the Australia-China trade relationship continues to prosper. They noted progress in the FTA negotiations and acknowledged that the WTO Doha Round was the best means for securing across-the-board gains.

“People-to-people links also play a vital role in the Australia-China relationship, which is based on mutual respect and recognition both of our shared interests and of our differences. This book looks in detail at cross-cultural issues and offers many insights for those who undertake business in China.

“Dr Mona Chung’s professional background has enabled her to bring to her study, and to the preparation of this book, a deep appreciation of the cultures of both Chinese and Australian business. She rightly points out that business success in the Chinese market requires awareness of the opportunities available and an appreciation of how the legal system and culture operates.

“The book has implications for managing cross cultural teams, selecting the right personnel, assessing strategic investment decisions, and negotiation and communication processes in China.”

To listen to Dr Chung interview on Radio Australia:
http://www.radioaustralia.net.au/programguide/stories/200811/s2413349.htm

For more information about Dr Chung and her work:
http://www.deakin.edu.au/buslaw/management-marketing/staff/chung.php

Previous Research News article on Dr Chung:
http://www.gsdm.com.au/newsletters/deakin/July07/mona.html

*Shanghaied - Why Foster’s Could Not Survive China by Dr Mona Chung is published by Heidelberg Press
Fax/Phone: +61 3 9459 8827
E-mail: info@HeidelbergPress.com.au
Postal Address: PO Box 234, Heidelberg, Victoria, Australia 3084

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