Friday, September 7, 2007

Visa Policy

The US is likely to make its visa policy less stringent for Chinese travelers. The China National Tourism Administration and the US Department of Commerce will sign an agreement at the end of this year on loosening US tourism visa processes for Chinese citizens. At present, the parties are discussing the detailed conditions and rules for visa issues. According to Bo Huailu, president of Bravo Travel, six out of 10 Chinese travelers are refused when applying for a US visa.
We actually haven't had problems getting people in - people whom I thought would be tough. But I constantly hear the horror stories.

I've recently been working with a couple of business owners from the US who met a Chinese gentlemen at a trade fair last year. He agreed to purchase some real estate from them in the US that was quite expensive (well over a million) and signed a contract. Since that time, they have been talking to him over the phone.

The description I received was: Mr ___ is a very wealthy individual and owns majority interests in a number of companies listed on the Hong Kong stock exchange. He wants to invest $10 million in our business as well as purchasing a number of other companies in the US, including a professional sports team, gambling casino and some other ventures. But, he doesn't want to close on the real estate until he sees it and he's having trouble getting a visa.

Hum. Not adding up.

Why would someone worth hundreds of millions walk up to a small booth at an obscure trade show and offer to invest hundreds of millions of dollars? And I can promise you that no one in that position will be denied a visa unless Mohommed or Osama appears in his name, or he has committed a serious felony.

I knew before I met the guy that he was taking these nice folks for a ride. I asked them if they had checked out the companies he claims to own. Nope. I had my secretary do some preliminary digging on the internet and the guy is a nothing. His company is so small and undercapitalized and he couldn't afford the $100 visa charge at the consulate.

When people come to China to do business, they check their brains at the door. Smart businessmen that have built little empires in the States seem to think that the rules of business don't apply over here. Some of the better ones don't. Don't do anything in a foreign country that you wouldn't do in the United States. That is a good place to start.

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