There are many rules and regulations in China that are ignored systematically. One of the hardest things for an outsider to master is the art of tiptoeing through the gray area. If you use the western interpretation of the law, you will find PRC laws paralyzing – if you are going to be a boyscout about it, you will not be able to get anything done.
To further illustrate this, let me try to explain the different approaches to establishing law. The US focuses on fairness, equality, logic, and transparency. In the most general term, we expect that everyone should be treated the same under the same set of circumstances. Of course, this doesn’t always happen, but that is what our system aspires to do.
The Chinese legal system is more similar to parenting. Just because other kids have an iphone doesn’t mean you can have it too. When I said no more TV ever, I really meant no more TV until I change my mind. When I said you’re grounded for life, you can of course go to school… and after school activities, and if you behave well, I won’t say a word when you tell me you’re heading out for a movie. Let’s both just forget the rule is there.
To operate in China effectively requires one to push the envelop and challenge the authority. But remember, not all laws are meant to be broken. And just because your neighbor breaks the law doesn’t mean you can do so too. And herein lies the art of doing business in China.









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