In the Thick of it

Traveling from Hong Kong International is considerably more frustrating after midnight. I'll just leave it at that and let this post suffice as news of my safe return to China.

Our team was fortunate enough to be granted free passage to the 13th annual China Venture Capital and Private Equity Forum being held in SZ this year. It was packed with eager small businesses and budding financiers jockeying for limelight and space at the talks and events. It seemed to have all the makings of a proper forum, with great sponsors, lots of high end wine tasting, and some genuinely thoughtful sounding discussions.

It seemed to fall short of this, and nestled itself into a phrase that I've grown quite fond of out here: Not as advertised.

Our team split up and hit three discussions simultaneously, OPJ listening in on green-tech in China (of interest to us and one our largest client), his fiancee to a forum on the SZ Stock Exchange listings and legal matters (her cup of tea), and me to biomedical and biotech in China (relevant to one of our lazier quasi-clients). It was an exercise in patriotism for China, with prominent businessmen rallying the audience behind building domestic institutions to compete both at home and abroad. Not a soul mentioned anything about foreign and Chinese companies working together, which was oddly enough the title of the discussion. The highlight of the discussion involved one CFO of a major Chinese Biomedical discussing venture capital for Chinese Medical device makers and pharma.
He stated that because of the high risk involved with the industry, businesses would need to focus on "commercializing" the technology of foreign companies, and even joint venture partners in order to reduce the normal risks associated with investing in drugs and devices. Now, this has been mentioned many times by the foreign press, so I'm not making any huge breakthroughs here, but I was taken by how nonchalant they were about what amounts to outright theft of foreign intellectual property and patents.

This may be a dangerous thing to call out, but it seems to be a common and accepted notion here and one we will work to understand better for our clients.