Emerging economies do business together
Jinfo Blog

By Joanna Ptolomey

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In my FUMSI Tipple this month I raised the name of Carson Block and Muddy Waters Research. He is the author of Doing Business in China for Dummies and, as the Economist reported, for a man that Wall Street knew very about until very recently his knowledge and interests in Chinese companies and investment are again raising the question of how business is done in an emerging economy.

Doing business with China is tricky and, with that in mind, a recent VIP Magazine was dedicated entirely to China. From product reviews of CEIC China Premium, EMIS China and China Connect to industry news intelligence it is a jam-packed and insightful issue for anyone trying to gain a business foothold in this emerging market.

Everyone wants to have a better understanding of what goes on in the business world of an emerging economy. We often think about it from the perspective of a developed economy and an emerging economy together, but what if the two economies wanting to do business together are emerging economies?

The FT recently reported on Brazil and China and their efforts to do business. The focus is on the efforts via the cultural differences between Brazil and China as an attempt to do more and better business together.

As Robin Neidorf recently reported on LiveWire, language skills are of great importance as well as understanding cultural differences when it comes to China especially. Hierarchy (and the real decision makers) and timing are also issues in making the business decisions and partnership agreements for the Chinese according to the FT.

They could hardly be two more different cultural groups. The Brazilians, generally more laid back where time is a moveable feast and loving the small talk. Whilst the Chinese generally live by rules and regulations for doing business with strict hierarchy and muddy pictures of parties and possible stakeholders involved. And yet they are both desperate to find ways to do better business.

In a recent NPR report, Brazil has now replaced the US with China as its largest trading partner. Brazil has what China needs in terms of raw materials and manufacturing such as the airline manufacturer Embraer. All the evidence suggests that doing business with emerging economies could indeed be filled with muddy waters.

Robin Neidorf, FreePint Research Director, has been attempting to clear the waters somewhat with a survey on information from and about China. This survey has now closed but she tells me the full report is expected in the next couple of weeks. 

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