It isn’t always possible to win in China
We have written in our earlier news that those who went early to China, the new world’s giant, earned great incomes. However, it isn’t always possible to win in China. Sometimes you need to take the risk of losing. Just like the experiences of Ali Akman, Chairman of the Board of Directors of Akman Holding, who is one of the first Turkish investors who went to China…
Akman explained his China adventure that started in 1994: “We had the Chinese people drink fruit juice for years with our brand Golden. The business was progressing very good, so we also made investment in this country. At that period we made productions with a significant profit margin and we won. In 2001 we sold our shares and got our money’s worth. Afterwards we established a new establishment with a 10 million dollar investment in Yantai state of China. We sold it in September 2011 and left China.”
But why? Ali Akman responds: “Because we were late in selling the last company and we made loss”. Akman considers that approach to foreign capital has been negative in China in the last 5 years and doesn’t deem legal securities are sufficient:
“Companies to carry out business in China, especially those in our industry, should never make purchase by paying cash money. The profit margins for those to make investment decreased. Also the risk should be analyzed very well as the legal guarantee is very less. For example, a truck full of machines was stolen from our factory. Although we proved it with cameras, we couldn’t have the police take any action”.
In short, those who want to invest in China should better see the glass half empty.