Business in China #1 – Relaxing the Grip of Bureaucracy

ext">goods and lifestyle, which were only available in
Picture Beijing in the early 1990's – a stronghotels.
visual presence of communism in the typicalThe mid-90's brought new perspectives and
courtyard-style housing (12 families housed in a blockpossibilities to China. Private ownership was booming,
built around a central yard), grey Mao suitsbringing changes in life style and rapid expansion
everywhere, almost no neon advertising signs andovernight in the car industry, service industries, street
only occasional cars and mini-vans on the streets. Inadvertising and real estate. A foreigner wanting to
those days there were two currencies: Yuan andtake advantage of the numerous opportunities of
FEC(Foreign Exchange Currency) available only tosetting up a private business in China came up against
foreigners, with a lower exchange rate than Yuana mountain of obstacles presented by Chinese law.
(1$=8.9yuan, 1$=7.4FEC). Strong government control,The only way a foreigner was permitted to start a
exacerbated by the recent happenings on Tiananmenbusiness was in partnership with a local person, who
Square, meant that getting to know Chinese peoplewould have to have a major share of ownership and
was almost impossible - they were not allowed toall legal rights.
enter hotels and so had no exposure to foreign