Editor’s note: “Guanxi” is the Chinese concept of fostering relationship in order to improve social standing and business deals; indeed, guanxi is often more important in China than a signed contract could ever hope to be. But as much as China tries to modernize, this ancient concept prevents transparency and an open market.

Trying to make a point, this Chinese translated article draws up many examples of how foreign retired government officials use guanxi in China, and work as consultants or promoters in after their retirement from public office. While one can draw up many generalizations from such an article, the fact still remains: they are using their status as former heads of state to help promulgate their self-interests as well as those that they represent.

In China, do as the Romans do.

Source: yevkusa

Henry Kissinger

Kissinger has visited China close to 80 times; of these, a portion have been personal visits but the majority have been business-related.

In 1982, Kissinger lent his name towards establishing the consulting agency “Kissinger Associates Inc.” (hereafter abbreviated to KAI). The purpose of this company was to conduct risk analysis for companies wanting to invest in other countries and to employ their diplomatic assets in order to aid companies towards “finding people” in this respective country.

Once Kissinger’s company KAI commenced operations, admirers came quick and furiously. In their eyes, Kissinger’s involvement signifies trustworthiness as well as access to information, and human resources, that they would never be able to access by themselves. Kissinger preferred to play the role of middleman between the two parties, and did not just serve as a representative for his client.

Kissinger came to be known as an “old friend” to Chinese from all walks of life, as he would exert his independent influence upon the business sector; before he retired from the company, Kissinger became the best deal maker for implementing development proposals in China.

Hewlett-Packard’s success as one of China’s earliest joint venture enterprises was the result of Kissinger’s promotion. When Deng Xiaopeng met Kissinger In 1979 he had reportedly said, “China is currently undergoing modernization and requires technological advancement and innovation. Can you recommend some high-technology US companies to co-operate with China towards developing the country?” And Kissinger recommended Hewlett-Packard.

When Kissinger visited the People’s Diplomatic Institute of China in November of 2003, it was the 39th time he had come to the country. Serving as a consultant for JP Morgan Chase & Co, Kissinger had brought along William Harrison, CEO of JP Morgan Chase & Co, as well as the company’s senior management of the Asia-Pacific region.

During the visit, Kissinger had thought a question posed to him by a reporter for a financial media outlet to be beneath him. He said, “No matter if I bring along high profile guests, whenever I come to China to speak it is with high level international relations between the US and China with far-reaching implications; we will never speak again of specific technological-type questions as we have today.”

In October of 2007, Ma Yuhua, the president of the China Merchants Bank, arrived in New York to visit Kissinger. At the same time, Kissinger was serving on the board for American Express. The two sides discussed a plan for the China Merchants Bank and American Express to work together.

Kissinger asked, “Why is it that American Express cards don’t work well enough in the Chinese market, but yours will work fine?” Ma had answered, “That’s very simple to explain, it’s because we are very familiar with the Chinese market and know the psychology of the Chinese consumer.” Ma then asked Kissinger, “Are you decided upon China Merchant and American Express co-operating in China then? Will it succeed?”

Kissinger laughed, “Without a doubt; being able to have an important partner like China Merchant will definitely ensure success in China! The next time I see the other board members of American Express, I will convey to them the conversation that we had today.”

In May of 2010, American Express debuted its high-end core brand in China with its “Centurion” card. The card’s co-operating partner was the meticulously chosen third-party – China Merchant Bank.

Tony Blair

Since British Prime Minister Tony Blair retired from public office, he has visited China just about every year. In 2009, Blair would take his contingent again to China in the form of “Tony Blair Associates; abbreviated below to the “Blair Company”). Xinhua News reports that the main business goal of this company is stated as “to provide business consultation; government reform”.

In 2012, the government for the City of Kashgar had established a co-operative relationship with the Blair Company. In February of that year, the two sides signed a strategic co-operative pact in Hong Kong. The Blair Company promised to attract more foreign capital to the City of Kashgar as well as to provide overseas technology and cross-border co-operative opportunities.

Blair has also made a great deal of money delivering lectures in China. In November of 2007, a property development company in Dongguan purchased three hours of Blair’s time for 330,000 USD.

During a 2005 visit to China when Blair was still acting Prime Minister, Blair invited representatives from nine investment banks to have breakfast with him, at which he encouraged them to invest more Chinese money into investment projects in England. Leaders of companies like China Telecom, Alibaba, Huawei, Midea, Kongka attended the breakfast. At one point Blair grabbed the digital camera of Feng Jundi, Chairman of the Aigo group, and took a picture of the entire group; afterwards he told the crowd, “This is the best picture I have ever taken”

Henry Paulson

After having resigned in 2009 from the US Treasury Department, Henry Paulson was able to meet with Chinese leaders on a more regular basis. After his resignation, Paulson would take a position with the Bo’ao Forum for Asia where he would have a new place with which to meet Chinese leaders.

Reports state that at the Bo’ao Forum for Asia held in 2011, Paulson brought up a plan to write up a new book called “Doing Business in China and other Related Chinese Issues”. He said that the idea of this book was to “not make this such a mysterious subject”. Paulson admits that he is not able to finish the book in such a short time because he hopes to use the majority of his time “to better Sino-US relations.”

Gerhard Schroder

After the former German chancellor left office, he would go on to successfully promote many German products to the Chinese market. In October of 2009, Gerhard Schroder appeared in Wuhan, Hubei Province where he was joined by the CEO and Executive director of Herrenknecht AG, Martin Herrenknecht, a company that provides equipment for digging tunnels. That year seven Herrenknecht digging machines were busy at work building Wuhan’s subway.

In 2011, the important marketing proposals of Schroder appeared in Chongqing. According to a report made by the “Chongqing Report”, companies like Deutsche Bank and the BASF Group, seeking investment, would continue to raise the stakes all during Schroder’s visit to Chongqing.
Having operated the so-called "the world's largest MDI (methylene diphenyl diisocyanate) project" in Chongqing, this plant was the largest investment by a German company into a petroleum and natural gas chemical engineering plant in the central and western part of China; it is worth 8 billion RMB.

And the rest…

Former French Prime Minister Jean Pierre Raffarin hosted a signing ceremony for the development of leisure boats that involved a trans-national company liaison between France and China at the end of 2008 in Shenzhen.

Former New Zealand Prime Minister Jenny Shipley is currently the independent acting board member for Africa for the China Construction Bank. Shipley is also the acting CEO for New Zealand energy company Senior Money International and Genesis Energy. A report by the Daily Economic News states that Shipley received a financial allowance from the China Construction Bank for 431,700 RMB.

Former US Vice-President Al Gore is on good terms with Wuxi Suntech CEO Shi Zhengrong. Gore not only came to China to attend several environmental protection activities, but to solicit contributions from Shi to Live Earth performances held in many cities around the world.

Source: iFeng

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Keywords: Foreign Retired Government Officials Use Guangxi Henry Kissinger; Tony Blair; guanxi in China; implementing development proposals in China