Indeed, it is really hard to image there comes a time guanxi in China cannot be monetized. Here is the case.
Ms C and his busband were senior staff of two state-owned enterprise. Ms C retired a few years ago to take care of her daughter. Ms C got a very good guanxi with senior officials from Telecom authority and the cultural and broadcasting authority. With her guanxi, she even could build connection with Hong Kong Tycoons and elites.
Under her possession, she got licences in ICP, ISP, VoIP and etc, which are mouth-watering by foreigners. However, after years' effort in business sectors, she found herself ran out of energy with no profit and no prosperity.
What's going wrong here?
Is it merely a managerial problem? Yes, but just partial. Her basic target is to attract foreign investors to fund up her business. Her business never gets a long term planning and a roadmap. Everything in her business is just a mock-up and a logistic. Some products after being fully developed were never launched since she just wanted a showcase.
Honestly, it leaves the investors a lot of questions. Should we fund her up to build a real business? Would she be a good business owner? If you are a foreign investor, will you build your second home in China with her?
What is critical here?
It is a regulatory problem. Managerial problem can be easily overcome but not for regulatory problem. Thousands of rules keep foreign telecom related operator away. How to overcome this problem?
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