Many regular readers of the "Opinion" pages would have come to know me as a mostly, benign character, forever idealistic and one who, in his own way, is trying to assist in making China and the rest of the world a better place for all to enjoy.

"Publish and be damned" is a phrase that some of us are familiar with and this very potential damnation stops many from committing their ideas to paper.

Yours truly is therefore very much aware of the possibility that some of his utterances, seemingly bright ideas from his point of view and/or suggestions for improvement, might be considered controversial, utopian or plain nonsense by some.

Constructive criticism is always welcomed and, believe me, Jacob has broad shoulders upon which tonnes of (justified) criticisms may be deposited.

I am also not usually one who is easily baited but the retort by Mr Xu Shengsheng (Shanghai Star August 5-11) to my "Friendly Chinese" article (Shanghai Star July 29-August 4) demands rectification, lest readers be led up the garden path.

On accommodation Mr Xu asserts that foreign friends, out of hygiene and security considerations, are not going to stay in residential quarters, let alone look for a house by themselves.

Huh? It seems Mr Xu is still immersed in 1966 rules. China has moved with the times, Mr Xu. It is now perfectly legal for any foreigner to stay in private accommodation. All he needs to do is register with the local police, get a yellow slip and, presto, it's legal.

As for finding private accommodation, there are now more than 200,000 foreigners living in Shanghai alone. Most of them have found their own rented apartments or have bought a house or apartment with or without the help of Chinese friends, registered with the police, got their yellow slip and/or their residence permit (green book for foreigners); some even for five years!

On renting apartments, maybe Mr Xu is correct here. The landlord threatening to throw my friends' property onto the street if he did not repair the appliances provided is not part of the "culture gap".

Maybe it should be categorized as a misunderstanding or, perhaps, plain cheating.

As for joint venture contracts that have gone sour, again, I can only surmise that Mr Xu is not aware that 70 per cent or more of joint venture businesses established in Shanghai before 1996 have come to an often explosive end with countless foreign friends losing their shirts.

Some five-star hotel bookshops have English language books brimming with sad examples of non-co-operation, endless cheating and teasing and annoying the foreign partner of, mostly, substantial joint ventures.

I personally know of one hapless foreign victim where the Chinese joint venture partner had sold the land use rights of the joint venture factory (50/50 owned) without a board resolution and without informing or asking the foreign party for their permission and, initially, even denying that such a sale had taken place but suggesting that the JV be closed down (presumably without compensation) owing to "unsatisfactory results" in the eyes of the Chinese partner.

Strangely, the sale had taken place at a price seemingly way below market value and, more mysteriously, the land use rights were sold and resold at least twice in as many months, while the actual property transfer was not to take place a year later.

Who might have pocketed the profits that no doubt ensued?

In the end, all factories surrounding the JV building had been demolished to make way for new flats and shops, except the one from the disputed JV.

One of the foreign directors slept 24 hours on the deserted premises on an empty 10 hectare plot which, in itself was dangerous, nay, a frightening experience that required nerves of steel, for nearly two months. This foreign director had told the menacing bulldozer crews that if they demolished the building, it would be with the foreign director inside. The police were informed of this.

In the end, the foreign party got their investment back and some expenses. That is all - not the profits from the land sale. But that was better than the painful experience of a Japanese JV in Tianjin, where something similar happened. Those foreign partners went into arbitration and went the legal way. And because the JV factory was demolished, the Japanese thereby lost their trump card. The foreign investors spent an enormous sum of money on legal expenses over a three-year period but are likely to get very little compensation, if anything.

Mr Xu asserts that the sad experiences I related to are the exception rather than the rule. Perhaps he should mix with some executives of JV's in China at some of the foreign businessmen clubs, get close to some and get them to reveal their opinions about their JV partners and hear some of the hair-raising tricks some local JV partners, who often have a totally different agenda. Read some of the English language books that are around. "Beijing Business" magazine devoted an entire article about 18 months ago on the sale of land use rights and cheating by indigenous JV partners.

No "culture gap"? I beg to differ. Most western business people settle whatever dispute is in hand, count their losses and spend their time on more productive pursuits. Even if they have been cheated.

Many Chinese businessmen, though, have that problem with "face" and will continue to pester and punish, justified or not, even if this inconveniences themselves enormously and even if their pursuit may cost them time and money.

No "foreign devil" should get any benefit, which the Chinese partner considers inappropriate, unfair or unearned.

This despite the fact that it may not even concern his own money but someone else's' or, indeed, the State.

Having said all this, do I like China? Yes!

Do I enjoy my stay in China? Yes!

Do I like Chinese people? Yes! As I said in the article, as friends there are no better. And I mean it, really.

In business, though? Yes, China offers great opportunities for foreign investors, and I would strongly recommend most to come and invest.

The Chinese, too, benefit enormously because of increased job opportunities, taxes, foreign exchange income from exports and rents.

However, the foreign investor must be extremely careful and, ideally, be in full control of the management and decision-making process of the venture at all times. Caveat Emptor? More than ever.

Mr Xu, whether you like it or not, there is a "culture gap". And, sadly, it revolves substantially around "face".

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