“What is the basic difference between Chinese style and Indian”? This question has often asked by my friends and colleagues. Though it would be difficult to enumerate all differences I would nevertheless make an attempt.

Someone once told me that Government dealings in China are Grey in Colour. In other words subjectivity plays a major role and interpretations of Rules/Issues are as per “Convenience.” India also has shades of grey in dealings but subjectivity in decision making by Govt. Servants is not very simple and easy. With an aggressive media and RTI in place transparency cannot be totally avoided. No such need in China where the Media is State Controlled.

A few years back an Industrialist known to me wanted about 25/30 acres of land by the side of Yangtze River. He had located the exact place on the river which had adequate depth to enable his ships to discharge raw material alongside. The only problem was the presence of a small village on the land. The local Mayor did not see this as a problem. The Industrialist who was willing to pay the required price for the land was asked to come back after 15 days to take possession of the land, sans village. True to his word the Mayor delivered vacant possession of the land after 15 days. The village was relocated 2 Kms. inside.

Is this possible in India? Even to think would be childish. ‘Singur’ is still fresh in memory and no one is going to take any chances whatsoever. Moreover our Courts also grant Stay Orders at the drop of the hat even though the issues may be of public interest. No wonder China’s pace of development is miles ahead of India’s.

One great difference between India and China is the attitude of ‘Chalta hai’ which we see in India. Indians accept mediocrity and are willing to overlook minor aberrations. Chinese businessmen would not accept anything which is second best. The Chinese Businesses have adopted Western work culture and ensured Best Practices are adopted in their plants. The Chinese have been lucky in this sphere. If we analyse the Industrial Growth in China during the last few decades it would be seen that it has been fuelled largely by Expat Chinese residing in Hongkong, Malaysia, Singapore.Having been exposed to Western Practices over the years has helped them in replicating the same in Mainland China.

The Indian story has largely been home grown and did not have any such advantage. However, the situation is changing greatly at the ground level and Indian businesses are now not willing to cut corners in their quest for excellence. A shining example of Indian Excellence is ‘Mundra Port’ built by Adani’s in Gujarat which can proudly compete with the Best Ports in the world. Indian capability is not in question but the commitment to be world class is what separates Wheat from Chaff.

Mid sized Chinese Businessmen like their Indian counterparts do not have much respect for the written contracts..It is not uncommon to see Chinese defaulting if the market goes against them and losses have to be borne..Indian businessmen are comparatively better but instances of Indian defaulting are also not uncommon..An International Trader known to me once remarked ‘Its a nightmare dealing with China and India if the market goes against them’

We have heard a lot about the Chinese disdain for International Laws and difficulty in enforcing international Awards in China. We have also repeatedly heard that Indian Laws are much better and this is one of the reasons International Companies prefer India over China for investment. In my humble opinion this is all hogwash. Both India and China can be classified in the same category.

If China has scant regard to International Laws so does India. Ask any businessmen how difficult it is to enforce any International award in India. Indian Courts take ages to give their Judgement and by the time the Judgment comes the litigant may have given up hope and reconciled to his fate/losses. Even, after a Judgement is obtained it is well nigh impossible to execute the Decree/Award.

A lot has been written about ‘Crony Capitalism’ in India and lack of transparency in decision making by Government. My honest feeling is that China is no different. It is quite natural too. In countries where the Power to dispense favours is with Govt. Servants and Politicians it is impossible to do away with this no matter what the media writes.

In nutshell the differences between the two economies are blurring and as time passes we would see much more convergence. It would be apt to say India is slowly and surely adopting Chinese Style in dealings.