Quote:
Originally Posted by shedcoupe
Clive Palmer’s mine (asbestos with iron mixture ...) has a lot of Chinese staff such as engineers.
In their culture no one rocks the boat or challenges superiors, so when idiocy is approved it stays approved.
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Correct.
I've known a few different corporations that have tried to do business in China.
Two Massive Problems:
Quality Control (or the complete absence thereof); and
Getting Paid.
Many years back, I worked for Bradken. At that time they had set up a Foundry in China. The initial goal was to leverage Bradken's expertise but use cheap Chinese Labour & Steel, to supply the burgeoning East Asian Mining Industry.
But the quality control was driving them nuts. The Chinese just wouldn't do it. Their whole culture is geared towards covering up mistakes, even when they are somebody else.
It's clearly not impossible, some companies have managed it, and some Chinese companies produce brilliant stuff. But most don't.
More recently I worked for a local Engineering firm. Their expertise was Engineering & Managing Industrial & Mining projects.
They were invited to be JV partners on a big project in China.
I wasn't in an advisory position, I was just the numbers guy, but I did warn the CM what would happen.
The Australian Bosses thought it was such a windfall being allowed to procure and supply a lot of the materials and specialised labour on a "Cost Plus" basis.
It didn't seem to occur to them that "Cost plus 15%" turns into "Cost minus 100%" when you don't get paid.