Chinese Go Out Enterprises and Foreign Related Legal Practice: Anecdotes and Thoughts About “卷”And Negative Competition

In my last trip 2 weeks ago to China, I Iearned a new Chinese word “卷” or “Juǎn” in pinyin.

In English, it translates as “roll”, but I was told “卷” is a negative word to describe the new phenomenon of negative competition / over competition among businesses in China in recent years.

A competitive life and death struggle – which immediately brings up the image of a pit of crocodiles rolling and killing each other. It’s a troubling image indeed.

How will it affect Chinese Go Out enterprises and foreign related lawyers assisting them?

After returning from China, I had the pleasure of meeting Brother Hou, who came to Malaysia 10 years ago and started various successful businesses. His latest initiative is a non profit non governmental mutual aid and self help community for Chinese nationals doing business, working and or residing in Malaysia.

A complete opposite of “卷”, the idea of a mutual aid and self help China nationals community in Malaysia is very similar to the Chinese clan associations in Malaya and Singapore in the 19th century.

Mutual aid organisations in British Malaya and Singapore were set up to provide for the day-to-day needs of Chinese migrants as the colonial government did not do so for migrant communities then. These aid organisations are kinship based Chinese clan associations which played a critical role in supporting Chinese communities in Malaysia and Singapore in past centuries.

In South East Asia, Chinese descendants remember well the teachings of Tao Zhu Gong (born Fan Li in the ancient State of Chu and trusted advisor of King Goujian in the State of Yue in 722-476 BC).

Tao’s advice and business principles, held tightly by South East Asian Chinese businessmen, include “do not engage in unnecessary competition. A focused person is not easily tempted to be in limelight and rushed into battle with his competitor”.

In China’s long undulating 5,000 years old civilizational memory, over competition or “卷”seems ill advised and shortsighted.

In the 21st century, Win-Win cooperation is a key idea in Chinese President Xi Jinping’s keynote speech on “Taking joint efforts to forge new partnerships of win-win cooperation and building a community of common destiny” at the general debate of the United Nations General Assembly commemorating the 70th anniversary of the United Nations (UN) in September 2015.

In constructing the Belt And Road Initiative (BRI) and investing and doing business overseas, Chinese Go Out enterprises and their foreign related legal advisers will face an abnormality and dilemma: Should they follow “卷” or the long tested Chinese civilizational business principle and current BRI policy of win win cooperation and shared destiny with fellow Chinese enterprises and local business communities overseas?

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