Understanding China, One Blog at a Time

An American in China

Crook Speak and China Green Agriculture Inc.

Posted by w_thames_the_d on October 18, 2014


Chinese companies have invaded the American stock market. With them one can enjoy a taste of China from home. Purchasing China Green Agriculture, Inc. (NYSE: CGA) for example, allows a guy sitting in Dubuque, Iowa to be lied to and cheated just as much as his Chinese counterparts. Of course the guy from Dubuque has to be foolish enough to invest in Chinese securities, but lets avoid that topic for now. Yes China has off shored deceit and fiscal misrepresentation, the two key ingredients to all matters financial in the PRC.

In the letter below, some toe-headed guy wearing a uni-cut suit and brandishing teeth the consistency of gravel and the size of size of a small animal attempts to explain to hard working Americans how his company did not lie to them this stealing their cash.

As much as I would like to believe him, I cannot. If nothing else, my seven years in China taught me one truism, ‘believe nothing from China’. While this seems like a sweeping generalization, it is. Thus does not mean it is untrue, however. For example, I would contend that Tutsi’s are big and pygmies small. Both are generalizations and both true.

The simple fact is that Chinese define ‘truth’ differently than we do. Susan Blum addresses this issue in her book Lies That Bind: Chinese Truth, Other Truths but I will summarize her conclusion for you: Chinese do not see lying as deceit. To them it is circumstantial and a matter of kinship. As you will never be kin as they define it, you stand a much greater chance of being lied to. In sum, Chinese will deceive you as often as they can. To them it is a matter of economic survival.

Bear that in mind when reading the following:

XI’AN, China, Oct. 17, 2014 /PRNewswire/ — China Green Agriculture, Inc. (NYSE: CGA; “China Green Agriculture”, “we” or the “Company”), a company mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today provided a shareholder letter from Mr. Tao Li, the Company’s Chairman of the Board of Directors and Chief Executive Officer. The full text of this shareholder letter is as follows:

Dear Shareholders:

Certain short sellers published an article on October 1, 2014, that falsely alleged us of misrepresenting results of our operations and our sales. We have carefully analyzed that article and found it contains numerous factual misstatements. The article was a malicious attack to our Company’s operations and business model with largely distorted and inaccurate information. Certain presentations in the article were obtained by the short sellers via criminal means, such as corporate espionage and sabotage. The law enforcement in China had already taken the case and is currently prosecuting against this espionage crime.

Our Company operates with high ethical and quality standards while our management constantly reviews our business practices and products. We also hire independent, outside experts to ensure our operations are in full compliance with laws and regulations.

The allegations against us are frivolous. On October 1, we have updated progresses on our development of new business model in a press release, in keeping with our policy of communicating with our shareholders, we hereby provide rebuttal to the shorts’ article.

Link

http://money.cnn.com/news/newsfeeds/articles/prnewswire/CN40659.htm

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