Doing Business in China: Speak Softly and Don’t Carry a Stick

It’s a pretty firm rule of doing business in China that you don’t want to get on the bad side of those people who regulate your industry. Like bureaucrats in other areas (think sports here), they tend to take the attitude that anybody openly defying them should be immediately squished as an example to others. But when you are trying to deal, as Microsoft has to, with rampant piracy that is losing you tens of millions (hundreds?) a year, it’s a delicate path to negotiate. Thus when there was a howl of complaint on the internet when Microsoft unleashed (I’d link to our post on this but we still seem to be having problems with transferring over our archives and comments) an anti-piracy campaign earlier this month that turned some fake Windows users’ screens black, some people wondered whether there would be an official reaction. After all, Microsoft had certainly hurt the feelings of some Chinese people. Now we know. Here’s a story on official reaction from today’s South China Morning Post (which is behind a paywall; hence the full story). Bottom line: standing up for your rights is ok. Just don’t do anything more than complain though:

A vice-director of the National Copyright Administration has reprimanded software giant Microsoft, saying it used “the wrong methods” to protect its intellectual property rights.Yan Xiaohong said yesterday in Beijing that although the Chinese government supported companies standing up for their rights, businesses should be careful in how they do it.    

Mr Yan was asked to comment on recent moves by Microsoft to blacken the computer screens of people who used illegal copies of Windows XP and Office software.

People who updated their software installed a plug-in that turned their screens black.

Microsoft intended this as a warning against piracy. Although the black screen does not harm computers, the move has upset many users on the mainland who accused Microsoft of holding them hostage and invading their privacy.

Microsoft has said the update is not compulsory, and that it would enable users to determine if their copies were counterfeit or genuine.

Yesterday Mr Yan weighed in on the controversy, saying Microsoft had ignored the interests of users in developing countries.

“Standing up for its own rights, of course, is important,” Mr Yan was quoted as saying by Xinhua. “But resorting to a `black screen’ is something else, and we are concerned about such a move.”

Related Topics: China
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  • mingming2

    Wow, China is terrible! So why still holding her, rolling on the ground for staying there? Go back to your own cozy cave then.

  • johnsmith9876

    Great news for those who are denied the pleasure of surfing in China:
    http://www.chinalawblog.com/2008/10/now_everyone_can_try_chinas_gr.html

  • laoguo

    To johnsmith,

    Why don’t you treasure the precious time to donate your last ten bucket pocket money to your beloved McCain the Bush reborn, instead of hanging here cursing China? Or simply slap your azz swollen and cry it as done by Obama’s n’gar boys since election is turning ugly?
    Time is running out, man, with only 6 days to go!

  • mingming2

    “…hanging here cursing China…”

    I bet ten cents he is paid to do so. He just kind of trying to please his owner through cursing China, so he can get some trash to stuff his furry belly.

  • rickridge

    “Microsoft had ignored the interests of users in developing countries”- Yan Xiaohong (NCAC)

    The “China is a developing country” excuse is getting old.

  • johnsmith9876

    “I bet ten cents he is paid to do so.” Wow, ten big cents. You are really sure of your bet, no doubt. And your ten cents is big compare of what you can make as a wu-hao gang.

  • mingming2

    ” …You are really sure of your bet, no doubt…”
    I would be happy to knwo I am wrong. Actually I might repect someone who even hate China out of his own reason, not like a puppet hanging on the fingertip of others.

  • mingming2

    “…like a puppet hanging on the fingertip of others…”

    including some blogers who are writing here pretending with the “freedom”. Only certain topics they can write here that their boss likes, otherwise will be kicked out to the street with a tin can in hand. sign poor baby

  • eecavazos

    Mr. Elegant,
    You know the funny thing about all this? The people who own computers in China are the well off people in China, the ones who have annual incomes comparable to (if not exceeding) the middle class and the wealthy in developed countries. These people in China will spend thousands on LV bags and other luxury items and yet they use pirated software on their computers. Software is something practical while the luxury items are unnecessary. It’s like people are stealing gasoline so that they buy another pair of luxury sunglasses.

  • mingming2

    “…people who own computers in China are the well off people in China,…”
    If you don’t know it, don’t pretend to know. It is not your fault not knowing it and no shame on this, but don’t bring out what you imagined as facts. that is the things you should have known when you were in first grade if you ever been there.
    OK Mr. eecavazos firstgrader, do your assignment now: Show us your data about how many computers in China, and how many families with income equal the middel class of developed country.

  • ricelee22

    What’s wrong with Chinese complaining? Westerners complain all the time about the Windows Genuine Advantage patch, but suddenly if it’s Chinese then people come and hate.

    What I don’t agree with is why they need a minor official come out and mediate things. There’s already a hack that disables this black screen, pirates who don’t know how to get rid of a minor annoyance just shouldn’t pirate.

    But I suppose the software giant Microsoft would want some comforting after this ordeal.

  • mingming2

    “…rampant piracy that is losing you tens of millions (hundreds?)…”
    Angin, if you don’t know, don’t pretend to know. You need do your assignment too to show people you are not talking out of your imagination or even just anything coming to your mouth. You think without piracy Microsoft will earn hundreds of millions more in China? that is only what your dream.
    Actually I hate this kind of stuff and even assume the whole story from the very beginning is just Microsoft’s great evil plan. With the scary high price of the software, it had no way to open China market. We would had have to develop our own like the nuclear weapons, which sure would be much affordable. But piracy opened the door to the public for it. So at the beginning they just let it go. Wait till now everyone is using MS, our native version has been almost eliminate from the China computers. After swept the whole China market, OK now let’s antipiracy so everyone in China who took advantage of this has to pay the price. Smart enough. But things just went wild out of its control. Now there three ways ahead for MS: low your price, let the piracy go, or or fighting it to lose China market. Think we cant live without you for one day? try it then. It already been fed fat, and still sucking happily.that is why it is crying, but not going to leave.

  • maryblonde

    Seems China likes things that are not real. Fake protein levels in milk & dairy products, fake computer software, etc.

  • evykau

    What’s funny here is that some petty official comes out and chides Microsoft for this. People complain about Microsoft all the time, but it remains among civilians who feel like whining about how it’s not worth paying for Windows. My guess, though, is that this current comedy skit has less to do with the internet huffing and puffing, but because Chinese GOVERNMENT OFFICIALS use pirated software left and right. Whining is not unique to China, piracy is not unique to China, but government using pirated software is something that definitely sets apart China (and similar countries) from the developed nations whose governments would actually get sued if government offices used pirated software. So the lesson to Microsoft is: if poor government officials get black screens, then you’ve gone too far. Try something more passive aggressive next time.

  • ricelee22

    Ms. maryblonde: We also do iPods and iPhones, miss. Apparently you foreigners do pay a lot for fakes.

  • mingming2

    One new post on TIME talking about Microsoft: http://www.time.com/time/business/article/0,8599,1855616,00.html
    I hate links, because people need to go through the whole thing to get the idea, that sometime takes longer than needed. and if they are broken, then make no help at all.
    So I will explain what I got from it: Microsoft is already fall far behind on developing new softwares even concerning office appliances like Word, Powerpoint and so on. But it is still raking billions of money by selling them. Why? the reason is that it occupied most of the market and people are too lazy and safety-minded to try new ones.
    It proved my conclusion above: pivacy helped and is helping Microsoft sucking profit. IF Microsoft does not realize this and handle this issue in the wrong way, its falling down is soon to come.

  • mychineseconnection

    Helpful link to Chinese cultural norms and Western approaches: http://www.youtube.com/watch?v=RVmFsGp9FV4

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