Mr. Shangkong | The tale of Alibaba and GSK a sign of China's rise on world stage
Alibaba's successful IPO and GSK's record fine for bribery highlight China's new global clout
China's e-commerce leader, Alibaba, celebrated its landmark US$21.8 billion listing in New York on Friday - the largest IPO in American history - on the same day that British pharmaceuticals giant GlaxoSmithKline was hit by a record fine of US$500 million imposed by the central government.
The two stories - one happy and the other unfortunate - are perfect examples to showcase the rise of China on both the economic and political fronts on the world stage. Alibaba puts China on par with the United States in the rapidly increasing global competition for technological innovation and economic transformation.
The GSK case reminds me of a popular book , first published in China in 1996 and which signalled a new era for growing Chinese nationalism.
Don't get me wrong. I don't have any intention to defend GSK. It deserves the huge fine for bribing doctors to use its drugs on the mainland for many years. Such a huge fine would have been unlikely 10 or 20 years ago when Beijing wasn't economically or politically powerful enough to afford to get tough with large, multinational corporations like GSK. In fact, the GSK case is not only about money but also about "face".
Such a huge fine would have been unlikely 10 or 20 years ago when Beijing wasn't ... powerful enough
Understanding the so-called face culture is essential for any individual or company that wants to do business in China. Besides paying the largest fine imposed by Beijing on a foreign company, GSK also published an official statement of apology to the Chinese government and Chinese people, saying it "deeply regrets the damage caused".
