GOOD MORNING FROM LONDON #201
Tesla has run into problems in China after a woman at the Shanghai Auto Show wearing a T-shirt emblazoned with the words “brake malfunction” climbed on top of a Tesla car + started to demonstrate in front of crowds/media. Tesla’s initial response “we don’t compromise over unreasonable complaints”. China’s State Administration for Market Supervision stepped in. Tesla is now on the back foot.
In the same way, H+M is on the back foot over its support for a boycott of Xinjiang cotton + in the same way Jack Ma is in trouble for lecturing the Regulators.
Socialism with Chinese Characteristics is not Capitalism Without Restraint. China proceeded slowly in Opening Up. It started with Deng Xiaoping in 1976 + step by step China has made changes as + when it was ready. Too fast = confusion. Too slow = no progress. Trial and error have been the policy + it works.
But Capitalists coming to China do not understand China’s journey – to them, Capitalism is all the same. They are wrong.
Understand China from China’s perspective is the #1 requirement. Too many miss this fundamental step.