By: Eric

Eric — Wed, 14 Nov 2007 20:41:57 +0000

(1) This is not surprising. As a student in China in the late 1990’s it was clear that China was forging ties with citizens of African countries, particularly Angola, Cameroon, Congo, Zaire, amongst many others in order to create strategic relationships that would pay off in business down the road. This was often exercised through Chinese government scholarships given to students from African countries who were willing to study petroleum engineering and other related disciplines (in other words, China was creating strategic partnerships that would give them access to the needed natural resources to develop China’s emerging country). These students were treated relatively well by Chinese standards and were put on par with many other foreign students in China in the 1990’s (something that was surely welcoming to African students who may not have had opportunity or fair treatment in America or Western Europe). Now that these students have grown into their professional positions in their home countries, China is cashing in on those scholarships. This is not directly what is driving ICBC’s investment in SA (most likely not), the point is that China has been eyeing Africa as a source of business and political partnership for many years (this is nothing new). This move by ICBC is simply to set up a financial channel to do things in Africa that China has been planning on doing for a long time. Furthermore, China knew that to do battle with the powers who held sway over the Gulf region was not a smart move, rather China has rightly looked to alternative sources of oil and other resources. China smartly has stayed out of the big conflicts and has moved its pieces into position very quietly. (Until recently with Iran, China has been able to sidestep most big conflicts) This is certainly China’s strategy with South African banks. China, a young investor if you will, is willing to take risks that an older, conservative investor is not willing to take. Additionally, China appreciates a system that may not have fully created a stable and fully transparent environment. This leaves room for maneuvering.
(2) With regard to Where are American banks and telecomms? America is much too tied up in its problems to be savvy enough to develop strategic relations with South Africa the way that China seems to be doing. All the worse for America. Distracted in the middle east, America’s cost for lost opportunity is much greater than what is popularly estimated.

By: Faceless

Faceless — Tue, 13 Nov 2007 18:18:40 +0000

Now that ICBC commit to 20% stake in Standard Bank this sheds new light on the situation with regards to marginalising of SA Chinese citizens at Standard Bank for separate treatment for EE and BBBEE initiatives.
SA Chinese citizens, who also in the past have been historically and previously disadvantaged, are now unfairly treated on grounds of race at Standard Bank.
People do not realise that FACE is of utmost importance in Chinese culture.
Face goes hand in hand with guanxi. Guanxi is the way that business gets done in China.
Face is defined as “having a high status in the eyes of one’s peers, and is a mark of personal dignity.”
Chinese are “acutely sensitive” to “face” and that losing face is bad.
You can cause someone to lose face by insulting them or criticizing them in front of others.
You cause harm when you attack their personal dignity and treat unequally and this is in contravention of the SA Constitution.
Standard Bank may have realised this but maybe too late.
From the outset when this saga began, all that was asked was for equality and the same decorum to be afforded to all races including minority Chinese at Standard Bank.
The request at that time was to have the same FACE as everyone else, to be included until clarification and not to be marginalised.
This is reinforced by the decisions at all the other major financial institutions to include Chinese pending clarification at the courts with regards to EE and BBEE. This saves face.
Will the ideology of FACE be comprehended?
Who will have face only time will tell?
Vernon Whyte 2007/11/09

Comments on: The Lion and the Dragon

By: Eric

By: Faceless