Tuesday, June 19, 2007

The Wahaha-background

Forbes has an insightful interview with professor Wu Xiaobo of Peking University on the trouble between China's most succesful beverage maker Wahaha and their French joint venture partner Danone.
Wu wrote a book about Wahaha and has a 16-year long friendship with the major representative Zong Qinghou, who is at the middle of the dispute. His verdicts about his friend is harsh:
“Both sides are making errors,” says Wu. ... In the end, though, Zong may come out the big loser in a dispute that is becoming a test of the government’s commitment to the rule of law involving foreign businesses.
“Zong already has no future in Chinese business circles,” says Wu, who is also the author of a book about Wahaha, “Extreme Marketing,” and has known Zong personally for 16 years. “Zong is trading the credibility and social responsibility he should have as businessman for a little extra money” in negotiations with Danone, Wu says.

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