Scott Laprise | Communism, Guanxi, Innovation vs Adaptation, & Trying to Financially Analyze China

Today on The Negotiation, Scott Laprise discusses his transition from a career in diagnostic medicine to a financial analyst and researcher for emerging markets specifically within China.

Scott considers Chinese languages the most important to study because of the country’s position as a key player in world business. Additionally, it is not enough to converse in English because the Chinese express themselves in a way that is fundamentally different from how Westerners communicate. Scott, therefore, always seeks to understand the Chinese point-of-view on any given topic before negotiating or simply engaging in conversation with them.

Asked whether China can still be considered a “communist” country, Scott brings context by explaining that, at one point, China (specifically Mao Zedong) sought to partner with Russia, adopting elements of their political philosophy as a result. Today, however, Scott actually thinks of China as the most capitalist country today: While there are semblances of a planned economy, the Chinese themselves are very business-oriented and are masterful negotiators.

Scott also touches on the term guanxi as a cultural aspect that is uniquely Chinese. “The more you know people, the more you can ask things of them, and the more they can ask things of you.” He also notes that time also plays a big role, considering the long-term worldview of China. That is, the longer you have known someone in China, the stronger the reciprocal dynamic present in the relationship.

Scott goes on to talk about the ever-growing consumer culture in China. The speed and bottom-line-oriented nature of the economy mean less customer loyalty and a higher amount of unregulated pollution, but all of it speaks to China’s ability to pivot and become a dominant player in the market with relative ease.

On that note, Scott states that China is not actually innovative but adaptive. The Chinese do not care all that much about patents because they do not focus on novelty. He believes that countries that impose patent laws “are the rich countries that have a lot to lose”. China’s point of view, on the other hand, is to simply “catch up”.

Scott shares his point of view on the complicated situation around the US-China “Phase 1” trade deal, as well as what gives him an edge as a financial analyst. His viewpoints on these subjects are obviously influenced by the fact that Scott is a Westerner who lives locally—boots on the ground—in China, with business experience in both cultures.