Fixing the bad rap: Do Chinese businesses in S-E Asia need better PR?

A public relations drive may help, but the problem of Chinese overcapacity is more than just an issue of perception.

- Lin Suling

An alien descending on Earth might come rapidly to the conclusion that China businesses are evil corporations vacuuming the world for resources and leaving everyone else in the cold. Especially if said alien arrived on Oct 18 and attended FutureChina Global Forum, the annual flagship conference in Singapore organised by the non-profit organisation Business China.

When a panel on regionalisation was asked how a better balance can be struck around the flood of Chinese investments into South-east Asia, the answers revolved around ways to tackle Chinese overcapacity - where production of goods and services far outstrips market demand.

The polite speak almost suggests the issue is one of temperament and tone instead of policy and proportion. "Chinese firms sometimes are too aggressive," said Mr Pua Seck Guan, executive director and chief operating officer of Wilmar International, and executive chairman and chief executive officer of Perennial Holdings.

"They should be sensitive to local businesses," he added. He also said that those that venture overseas should consider partnering with local companies with sufficient exposure to the Chinese market and that therefore have an incentive to ensure their joint success.

Referring to the lease of Sri Lanka's Hambantota port subsequently taken over by a Chinese company, Mr Pua pointed out that such developments would be viewed differently if China had entered into a deal via a consortium that included firms from other countries.

THE PROBLEM WITH CHINESE INVESTMENTS

China's rising tide has undeniably lifted boats at a time when more developed, primarily Western, nations are putting up new walls and digging moats to protect their economic fortresses. Few countries in South-east Asia can deny the welcome surge of investments from their largest trading partner to create much-needed jobs for a burgeoning youth population.