September, September, September.

That’s when things are supposedly getting back to non-Olympics normal.

Or October. I’ve heard October too.

Mail will resume normally. We noted our problems here.

Businesses will be able to get goods shipped to and from China normally. I just talked to a Falafel restaurant manager in Ho Chi Minh City who can’t serve a side of hummus because his chickpeas usually come from China (apparently, there are none to be had in Vietnam), and they’re getting stopped at the border because of Olympics-related security and inspections. He’ll get his shipments back later this year.

And – perhaps most importantly for China - piracy may resume normal functioning.

Asia Times Online reports that 20 percent or more of China’s GDP growth is piracy-related.

“This state-sanctioned theft is a vital component of government policy that creates millions of jobs, helps control inflation, and raises the standard of living for many of the Chinese people,” Asia Times notes.

Piracy also will continue because, according to the Asia Times:

• Radical action to stop piracy would crash the economy and destabilize the government.
• The country still has socialist tendencies, with generations of Chinese executives believing that property belongs to the masses.
• Confucianism reveres imitation.

“Here is one typical ‘ghost-shift’ scenario of how such piracy occurs in what has become a global supply chain of piracy and counterfeiting,” Asia Times reported. “A factory in China is hired by a multinational to make 1,000 units of a product per day. However, rather than just run two regular eight-hour shifts to produce the contracted-for amounts, the factory also runs a third “ghost shift” then ships the extra 500 items out the back door.”

How can you avoid being the victim of China’s rampant piracy?

In his blog, Richard Brubaker, founder and managing director of China Strategic Development Partners, suggests five ways to avoid outsourcing risk (and piracy is a big risk).

1. Identify suppliers online – and that’s it. Make sure you continue due diligence efforts from here before you contract out work.

2. Understand and monitor how the supplier supplies you.

3. Inspect the supplier.

4. Make suppliers accountable. Tie final payment to a final inspection.

5. Strive for honesty. If the supplier is under cost pressures, make sure you know it. If you don’t understand their issues, they may do things under your nose.

Many expats in China will be glad when the Olympics are over. We’re looking forward to fewer visa worries (hopefully) and receiving suspicious mail, like those new kick-pirate-ass swords we ordered.

    Channel: Local Wisdom     |