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Business Chinese Credit Crisis Analyzed on Three Aspects

Keywords: credit crisis, dishonest performances, trust disorder, credit reporting system, Chinese merchant


Credit Crisis is the phenomenon of trust chaos, caused by dishonest performances. If the quantity of ill performances exceed the normal limitation standard, there will create a trust disorder, in which everybody think other people is suspect, then the vicious circle of credit crisis begin. 

Credit-Crisis can usually be found in developing countries, in which the construction of credit system is at its beginning stage. It especially refers to the situation after the World War I, when the issue of founding the credit reporting system is hot and urgent.

Before World War I, social credit problems were not as serious as afterward and people in that age were not so sophisticated. At that time, merchants knew their customers, consumers were less mobile, and credit relationships were more personal. People trusted each other in oral or just write down what they would promise on a paper. Contract, agreement, receipt, invoice, Letter of Guarantee, L/C and other forms of business document were still at the primary development stage. People didn’t need these complicated formal formats to guarantee credibility.

Nowadays, however, even there are hundred kinds of business documents, including those I referred above, which guarantee credit; there still have great danger of loose money in any transaction. Faithless behavior is increasing, people do not trust each other, and then there comes the credit crisis.

A. Credit & Country—what’s wrong with “Made in China”
Credit problem has badly influenced our country’s credibility around the world. Take the symbol “Made in China” for example. Some decades ago, Chinese people was proud of the sharply increasing export value of Chinese goods, which can be found nearly every corner of the world and famous for its cheapness and good quality. But in recent years, “Made in China” turned to be the image of low quality goods. How could this be?

Nowadays, the cheating methods in international transactions are mushrooming quickly. I don’t mean to say that all of the Chinese merchants are dishonest. But there do have somebody, who is short-sighted, like to make a fortune overnight and never see their behavior as illegal or dishonest. They use fake goods to cheat foreigners, and claim good-looking low-quality products to be of high value. They never think that what they’ve done, in foreigners’ view, was on behalf of they motherland. Those foreign customers, who found the goods were fake or beauty-looking goods easily broken down, they will never do business with that company again. Then, if they found more than one Chinese enterprises were in the same ill practice, they will think that is the common practice of Chinese merchant. That is why “Made in China” is notorious in the world now. When making a deal, foreign people usually ask: “high grade or Made in China?” that is to say: “you prefer to buy this kind of goods in high quality or low quality?” It is amazing that “Made in China” became the substitute of “low quality goods” and it is not glorious to win this kind of consensus. When our Chinese people heard that, would we be pathetic?

Compared with these dishonest performances, merchant in ancient China were more reliable. Take the caravan for example. Caravan is a gang of people, who make a living by deliver goods for other people. They kept their promise to deliver the goods on time and to the right person, even when their lives were in danger, without any form of formal contract with the owner. Why did they be so honest and would like to chose sacrifice themselves to save the goods?

B. Credit & society—what’s wrong with doctors?
Doctor, saving lives and bringing back health, is a great and respectful profession. However, nowadays more and more people don’t like to see doctor when they are ill, and even afraid to hear the name of hospital. Why does that happen?

Doctors are losing their faith as hospital sector commercialized. The income of doctor is not related to the quality but quantity, this encourages doctors not to prescript medicine accordingly. Thus they prefer to apply costly medicine to patients in order to get high rewarding kickback. This malpractice makes the profession of doctor losing the essence. Patients then became cautious about whether the prescription could really cure the illness. To cure a simple cold may cost you more than 200RMB in some hospital but only cost 10RMB if buy the right medicine in drugstore. Even you just got the coryza; doctor will say that you might have nose cancer and ask you to take lots of unnecessary complicated checkups, which will produce amazingly high cost. Not all the patients can afford those charges, so more and more people do not like to see the doctor unless they suffer a big illness. At the same time, there are lots of families, which burst-up, in order to raise enough money for expensive medical care. Therefore, the purest and respectful profession has been dishallowed all because of dishonest and greed.

Without any solution and restriction to medical area, the credit crisis is growing up like wild fire. We must find a solution right away, or the crisis will become more serious and no method can save the nation.

C. Credit & family—what’s wrong with parents?
The divorce rate is up to a new height and gives no evidence to drop in the new century. As the science and technology is developing, there appears a new technology, which make the divorce rate rising, is called Paternity Test, which makes use of the comparison of DNA structure to find relationship between two testers.

Several months ago, I read an essay from “China Daily”, the subject was, “as spring festival nears, migrant dads return home suspicious”. It talked about the Paternity Test—through which, parents can know whether the child is their real offspring.

In rural areas, it is usually men go out to find work in town or city, women left at home to do housework and raise children. Sometimes, children were born when father is absent from home. Spring festival is the time for family reunion, so lots of fathers went back to meet their families. But mutual trust between wife and husband is decreasing, those husband usually suspect whether the new born child is really his son or daughter. The only solution is to do the DNA test. It is lamentable to make this choice. And in most situations, the result would be divorce after the DNA test.

On the one hand, lovers saying how much they love each other, on the other hand, they do not fully trust each other. Using paternity test to authenticate love is not a good idea. If there’s no credit between lovers, how is love being? That’s why credit crisis between lovers extending.

                                                                                                         Source: http://blog.sina.com.cn/s/blog_53d01bc40100047c.html










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