Ethics in international expansion

Chinese manufacturer Gaongqing Union Auto Co has expanded to include sales in India.  This is surely something for Chinese to be proud about, and for some Chinese to get rich from.

 

Sad however is to see major Indian newspapers complaining that the Chinese are selling copies of Indian motorbikes in the Indian market.  This does not give Chinese a good reputation abroad.  This sort of activity will make Indians around the world unhappy, and make all people around the world think less of China.

 

This is not the work of one person.  There will be many who work for whichever this car manufacturer is.  Directors, Senior Managers, Managers, all of whom could have stood up to say 'no this is wrong'.  Maybe also regulatory institutions in China who might have had to approve the designs prior to manufacture.

 

The fact that this went through to production suggests a few possibilities.  Ignorance?  Corruption?  Deceipt?  Lack of business ethics?  Bullying?  Fear of losing one's job?  Fear of blocking a major international deal?  Fear of causing others to lose jobs?  Lack of institutions to report this to?  In any case, it doesn't portray China in the right light.

 

In the very near future, China will rise up to compete Properly at the international level.  Prouder moments then I am sure.  But instances like this... tarnish China's reputation overseas.  Who will want to buy China's products overseas if they have no respect for us?

 

In fairness, what happens in the West isn't always ethical.  Look at Anderson's shredding of documents, and Enron's overnight collapse due to imaginary profits and creative accounting.  America reacted swiftly and severely to this though, through Sarbanes Oxley, and holding company directors legally responsible for company accounts.  How will these Chinese Government react to this?  Well, as we know from Geely/GM, it's not the first time it's happened.

 

 

 

http://timesofindia.indiatimes.com/articleshow/msid-1368082,curpg-1.cms

NEW DELHI: The Chinese motorcycle industry is back to trouble Bajaj Auto. Only this time round, it’s not a cheaper two-wheeler from Beijing’s production lines that’s riding into Hamara Bajaj’s home turf, but a carbon copy of its top-seller Pulsar, which is now being marketed in Latin America under the brand name Gulsar.

"The bike has been copied from Bajaj Pulsar and even the brand name is very similar to ours. It’s a violation of intellectual property rights (IPR) and we have taken up the matter with the industry body, Society of Indian Automobile Manufacturers (SIAM)," a company source told The Times of India.

SIAM has already taken up the matter with commerce ministry. "We have made a detailed presentation to commerce ministry and pointed out that Gulsar violates IPR norms. We have asked the government to take up the matter with China and even WTO, if necessary," a SIAM official said.

Commerce ministry, sources said, has said that though individual cases may not be taken up, India is pursuing issues concerning IPR violations in its bilaterals with various nations.

 

http://economictimes.indiatimes.com/articleshow/1483190.cms

NEW DELHI: Imitation, they say, is the sincerest form of flattery. But for India’s largest two and three-wheeler maker Bajaj Auto, it’s more of a wake-up call — to stand up and protect a brand that’s been a household name in India for decades.

Last week, Pune-based Bajaj Auto was jolted by a new threat — a lesser known Chinese rival which was making and marketing CNG three-wheelers in dragon land under the brand name ‘Bajaj’.

The Chinese copy, built by Gaongqing Union Auto Co, has nearly the same dimensions as the Indian original. But the Chinese manufacturers are offering custom-built options as well.

Though Bajaj Auto MD Rajeev Bajaj points out that efforts are on to track the copycat and raise intellectual property rights issues with the firm, industry insiders say it’s easier said than done.