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Direct seller's roller-coaster ride pays off

Updated: 2010-02-04

Q: China's production price index (PPI) has been rising in recent years. Many foreign companies have moved their production bases out of China to cut costs. Does Amway have any such plan?

A: We have a manufacturing facility for China in Guangzhou. We also have facilities around the world. You have to find out the reasons why you produce the products in different places. One is to acquire high-efficiency around the world. Labor cost is not the only concern, but also whether or not the facility can provide support for our business.

So the plant is a long-term decision. We do not make decisions today and change them tomorrow. We built the China R&D center several years ago, and that is also due to our production in China.

Q: This year is the 30th anniversary of China's reform and opening up. As a foreign company with over 10 years' history in China, what do you think are the biggest changes in China over this period?

A: First I'd like to say the progress that China has made is astonishing. I've traveled around Asia and I found many enterprises would like to invest here in China. Business is the most sensitive for opportunity, you know. So this proves that China has great development potential.

I just came from Sichuan. Although it has been struck by the earthquake, it has an increase of 11 percent in its economy from the beginning of this year to now. And this proves that China is developing very well and people are unbelievably hard working there.

I've been in China many times during the past 15 years. And as we know, the US is the biggest economy, but China's, I think, has the most potential.

Q: Amway is one of the most active companies in terms of charity work in China. It had donated 250 million yuan by the end of June. Amway has also donated lots of money to Sichuan. What's your philosophy on corporate social responsibility?

A: That would go back to my dad. He told me it's very important to help others. In fact, my family always helps others. It's basically what we can afford as an individual. It's important for us to adapt to the community, the society and the market wherever we go. So I take it as a principle.

In fact, I do it as an individual instead of as an enterprise. And we'd like to do charity and to share our wealth with all around the world. So whether we work in China or India, we have works for children. And in Thailand, we have a project called Smile. We do it all around the world. And we do it just because we can do it.

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