Who needs connections? or Business is business in China

Any one who tells you that connections in China, especially in the government, are not that important any more either hasn’t been here very long or doesn’t have any connections.The recent pulling of the film “The Da Vinci Code” after it had already been released in theaters is just the most recent example of how arbitrary and inconsistent the government can be here. For more on film censoring see this.As I read the books and blogs of various writers on China, a general theme seems to be that business is business and politics is politics and the two no longer mix. Yet, news reports are proclaiming just the opposite. For example, read this. for statistical comparisons, see ICGG. Issues in just this weeks news alone could include any of the hundreds of recent articles about the “trial” of a NYT journalist and the sacking of the Beijing Vice minister for graft.I have to wonder where these optimistic bloggers are working/living. It’s certainly not China. Could it be that many of them are writing about China from abroad? Only coming here every quarter to stay in 5 start hotels for hosted dinner parties and sanitized factory visits? Or are they consciously and selectively reporting on news that enhances their entrenched investment positions?I am not blind to the vast opportunities here—obviously, or I wouldn’t be here. Nor am I a fear monger that is predicting the “Coming Collapse of China” as one writer has proclaimed. But caution, connections, culture understanding combined with significant amounts of due diligence and a high degree of risk tolerance are still required for doing business in China.The reality of China is that selective enforcement is the standard here. And, once in place, laws and regulations and even legal standards can and are over turned at the drop of a hat. Connections may not save you if your industry or product becomes the target of the week, but a well placed connection can warn you ahead of time and save you, personally. Good luck.