Although this article is aimed at other industries, it's also very appropriate for graphite stock holders to consider in relation to some of the Chinese MOU's/OTA's being signed....
Bellamy's and Blackmores learn the hard way: if you chase the Chinese dragon, you might get burnt
Yes, there are huge business opportunities in China. But there is also the very real possibility of losing a lot of money.
extract...
Yes, there is certainly opportunity in market the gargantuan size of China’s, but the rules — and business culture — is very, very different. The one-party state has its tentacles everywhere, and things change in the blink of an eye. In addition, very few Australian businesses that deal with China have any experience with Asia at the board level. It’s an exercise worth doing but, at a guess, I reckon one could count on one hand the number of Chinese-speaking directors around ASX 200 companies.
Most concerning for hopeful Australian businesses, there is nil chance of any legal redress if things go wrong. Just ask James Packer. Beijing, Shanghai and Guangzhou are littered with the corpses of Australian businesses that have misread the tea leaves, jumped into bed with the wrong Chinese partner been too successful at the expense of connected locals or been sideswiped by rule changes with no warning. So Australian companies need to tread far more carefully than government propaganda would have them believe.
