Committed to China? Prove it

“I have sent my wife across there because she understands the language,” The Financial Times reported News Corp. Chief Executive Officer Rupert Murdoch saying. “There” is China, and he sent Wendi Deng “across” to try to avoid the pitfalls that have ensnared other Western Internet ventures, including News Corp.’s.

I had to laugh when I read that, after I stopped shaking my head in disbelief.

After knocking on China’s door for years, Mr. Murdoch has clearly learned nothing. Sending a representative who carries no portfolio for the company except a wedding ring isn’t going to impress anyone in China, regardless of where she was born or what language she speaks. That “send the Chinese guy” strategy worked so well for Yahoo Inc. they no longer own their China unit and their coffers are $1 billion lighter. The one- or two-day “parachute” approach so many CEOs use isn’t any better.

Fortune 500 CEOs pay lip service to their and their companies’ commitment to China on a daily basis, and it’s wearing thin, especially on the Chinese. “We’re in it for the long-term,” “we’re here to stay,” “China is such an important market for us” — stop me when you’ve heard enough, because people here certainly have.

If foreign companies are committed to the Chinese market, then it’s time to demonstrate that in a meaningful way. The CEOs need to lead a China initiative the same way they would back restructuring, going green, or any other major corporate project.

Today I issue the China CEO Challenge: as CEO of a non-Chinese company, show your commitment to the China market by moving here for a year. Establish your personal headquarters in a major Chinese city (Hong Kong doesn’t count). Business travel is permitted, but for one year, your home and office are here. For extra credit, have your board meetings in China too.

My guess is that if Eric Schmidt parked it in an office overlooking the Bund or the Forbidden City for a year, China’s perspective of Google would change and vice-versa. He should spend some time trying to use his company’s sites on a regular ADSL connection, and slamming his fist against the desk when some of them are blocked. When pictures of him sitting at the corner shop slurping down beef noodles start showing up in local newspapers, it’ll win hearts and minds.

I’d bet the first CEO to do this will be European. There was a rumor a couple of years ago that Volkswagen’s CEO was going to spend half the year in China and half in Germany, but it never happened.

The opportunity is still there. If the U.S. or European or your other home market is more important, that’s fine. But then stop saying how committed you are to China because sitting in the same traffic, using the same Internet connections, and eating the same food is the real price of admission.