Original article: https://www.wsj.com/articles/alibabas-jack-ma-tells-u-s-companies-to-stop-whining-about-china-1512476279?mod=e2fb
There’s been a growing interest in China, particular businesses trying to expand their revenue source outside of the United States. There’s been difficulties nonetheless. It’s easy to point out the language barrier, the difference in culture, and the growth of Chinese companies competing with multinational corporations as obstacles and difficulties for foreign companies, particularly American companies, to enter the Chinese market.
I think many companies are a bit optimistic in entering the Chinese market. Part of the reason why it is difficult is the political structure, which is intangibly related to its economy, and the its effect on consumer patterns in China. The ability to censor and lack of intellectual property protection give the Chinese government a lot of authority on incentivizing or selecting certain business practices from foreigners that may differ from that in the United States. In the United States, regulation is only encouraged when it is for the benefit of the consumer purchasing said product (i.e. product regulation, safety regulations, and etc.) In China, regulations are mostly arbitrary to the state given that the Chinese government has no way of being accountable, much like that of the US system. The particularities for companies to compete in China, therefore, are different from that in the United States.
Jack Ma is correct on one thing. If you want to compete in China, you have to play by China’s rules, not American ones.