Australian Crown expats who get incarcerated illustrate that sticking to China´s rules and regulations might be a good idea when doing business in China. Airbnb and Apple even risk a backlash of their Western constituency by hosting their China data in China. Still the best way to move forward, says Shanghai-based business analyst Shaun Rein in The Street.
Some experts hold different views, believing that government protectionism has limited U.S. tech firms’ access to the Chinese market, forced them to do joint ventures and ultimately replace them with Chinese counterparts.
“American internet players can succeed in China – they just have to follow Chinese law, understand the Chinese consumer and localize services,” said Shaun Rein, Managing Director at Shanghai-based China Market Research Group. “Most western internet players have failed in China not because of government protectionism but because they simply did not understand the market and went against aggressive, well capitalized local players.”
Are you looking for more experts to help you in managing your China risk? Do check out this list.