China
and India will come to be economically dominant
players on the world stage. Already, China is commonly referred
to as "the
world's manufacturing platform." India, meanwhile,
has become a hot spot for high tech outsourcing, from software
development and call centres to the digital
transmission
of medical images read by lower-paid Indian
radiologists and beamed back to hospitals in Europe and
the United States.
IPR Infringement:
Some Chinese and Indian companies, driven by
short-term profitability needs (and in a pattern
familiar from other countries at similar stages
of rapid economic
development), prefer to adopt a ‘shortcut’ route
by launching products based (legally or illegally)
on other people’s technology, rather than investing
in the development of their own. In many cases
this has resulted
in immediate financial success, but it has
also led to an increase in IPR disputes. The
resulting long-term damage
to corporate reputations affects not only small
Chinese/Indian companies but also famous Chinese/Indian
conglomerates.
Civil liability:
Accidents and disputes happen. Sometimes it is possible
to minimise their consequences; sometimes it
is not. That is what keeps litigation lawyers
busy. China/India is like
anywhere else in that respect, except that it
is still developing mechanisms and laws for resolving
disputes. In general, the
laws and regulations are better established now
to help the 'parties' in a dispute to reach a
resolution. However, it remains the case that
personal contacts - and guanxi - still play
a major part in bringing disagreements to an
early resolve.
Local Culture and Custom:
Anyone doing business in China/India over a significant
period will have encountered or heard of corruption in one
form or another. The traditional Chinese definition of ‘corruption’ may
be different from what is understood according to Western standards.
For example, the giving and receiving of expensive gifts was
accepted as a friendly gesture in the past. Down through the
dynasties in China/India’s 5,000-year history, individuals
could ‘buy’ official positions from their bosses;
the right to collect taxes could be bought and sold; and criminal
punishments could sometimes be converted into monetary equivalents.
These practices were deeply rooted and permeated every level
of government at various times and places, even if officially
condemned.
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