2016年CRI Can foreign companies operate successfully in China?

 

At a recent funding conference in Beijing, celebrated¹ Singapore based investor² Jim Rogers spoke³ about the wealth of opportunities in China for companies and investors⁴ alike.

"I am investing in pollution control.. Look out of the window. You will see that China's filthy⁵. But Beijing is doing a lot about this and spending a lot of money to clean it up. One Belt One Road is spending a lot of money on railroads. There are many ways you can invest in China, agriculture and healthcare. So at the moment, for the most part, I'm investing in parts of China, the Chinese economy, where Beijing is spending their money. They have more money than I do. They are smarter than I am."

Success in China means gaining access to a market of 1.3 billion people, a prize almost irresistible⁷ to businesses from across the world. But as the taxi hailing company Uber found out, simply having a market dominance elsewhere, or a good business idea, isn't always enough to create success in China.

Foreign companies cite several reasons for frustration⁸ or failure… among them finding workers with the right skills, perceived preferential treatment for local companies, and raising awareness⁹ among the public. So many opt¹⁰ to work with businesses already operating in China. But Cao Can from Shengya Capital, warns even having a local partner is no guarantee of success.

"Didi has the backing of local tech giants such as Tencent and Alibaba. But they also have the support of local governments, and the local press. So it's very hard for Uber to compete without some support. Many of these foreign tech giants are sometimes a bit naive¹¹ when they first enter China. They thought it was going to be a cake walk, because they are dominating other markets."

Tom Simpson, from the China Britain Business Council works with companies hoping to become successful in China. He says it all comes down to research.

"Every market is different. It's not just China that has its complexities¹². If you look at the markets, markets like Korea, Japan, there are complexities that come with entering those markets also and so companies in general see it very much as par⁶ for the course. You've got to go through that process of research and understanding local regulations and understanding local culture, customs, the role of government – role of the state owned sector¹³. In general, companies are willing to play ball."

So is there a recipe for success? How should foreign companies approach access to the Chinese market? Cao Can from Shengya Capital again

"I think Uber has already done an incredibly good job in the sense that Uber China is a localised team, with localised executives, and local decision making capacity but still when it comes to for instance PR Relationships with local government and the press it probably lags behind Didi and that's how it was able to do the catch up and eventually cross past Uber."

Things are changing. Continued reform and opening up is creating a more foreign-friendly terrain¹⁴ for overseas companies. But it's clear, unless they fully¹⁵ understand China and its people, many firms will fail.

For CRI, this is Bob Jones.

1 celebrated   

adj.有名的，声誉卓著的

参考例句：

• He was soon one of the most celebrated young painters in England.不久他就成了英格兰最负盛名的年轻画家之一。
• The celebrated violinist was mobbed by the audience.观众团团围住了这位著名的小提琴演奏家。

2 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

3 spoke   

n.（车轮的）辐条；轮辐；破坏某人的计划；阻挠某人的行动 v.讲，谈（speak的过去式）；说；演说；从某种观点来说

参考例句：

• They sourced the spoke nuts from our company.他们的轮辐螺帽是从我们公司获得的。
• The spokes of a wheel are the bars that connect the outer ring to the centre.辐条是轮子上连接外圈与中心的条棒。

4 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

5 filthy   

adj.卑劣的；恶劣的，肮脏的

参考例句：

• The whole river has been fouled up with filthy waste from factories.整条河都被工厂的污秽废物污染了。
• You really should throw out that filthy old sofa and get a new one.你真的应该扔掉那张肮脏的旧沙发，然后再去买张新的。

6 par   

n.标准，票面价值，平均数量；adj.票面的，平常的，标准的

参考例句：

• Sales of nylon have been below par in recent years.近年来尼龙织品的销售额一直不及以往。
• I don't think his ability is on a par with yours.我认为他的能力不能与你的能力相媲美。

7 irresistible   

adj.非常诱人的，无法拒绝的，无法抗拒的

参考例句：

• The wheel of history rolls forward with an irresistible force.历史车轮滚滚向前，势不可挡。
• She saw an irresistible skirt in the store window.她看见商店的橱窗里有一条叫人着迷的裙子。

8 frustration   

n.挫折，失败，失效，落空

参考例句：

• He had to fight back tears of frustration.他不得不强忍住失意的泪水。
• He beat his hands on the steering wheel in frustration.他沮丧地用手打了几下方向盘。

9 awareness   

n.意识，觉悟，懂事，明智

参考例句：

• There is a general awareness that smoking is harmful.人们普遍认识到吸烟有害健康。
• Environmental awareness has increased over the years.这些年来人们的环境意识增强了。

10 opt   

vi.选择，决定做某事

参考例句：

• They opt for more holiday instead of more pay.他们选择了延长假期而不是增加工资。
• Will individual schools be given the right to opt out of the local school authority?各个学校可能有权选择退出地方教育局吗？

11 naive   

adj.幼稚的，轻信的；天真的

参考例句：

• It's naive of you to believe he'll do what he says.相信他会言行一致，你未免太单纯了。
• Don't be naive.The matter is not so simple.你别傻乎乎的。事情没有那么简单。

12 complexities   

复杂性(complexity的名词复数)； 复杂的事物

参考例句：

• The complexities of life bothered him. 生活的复杂使他困惑。
• The complexities of life bothered me. 生活的杂乱事儿使我心烦。

13 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

14 terrain   

n.地面，地形，地图

参考例句：

• He had made a detailed study of the terrain.他对地形作了缜密的研究。
• He knows the terrain of this locality like the back of his hand.他对这一带的地形了如指掌。

15 fully   

adv.完全地，全部地，彻底地；充分地

参考例句：

• The doctor asked me to breathe in,then to breathe out fully.医生让我先吸气，然后全部呼出。
• They soon became fully integrated into the local community.他们很快就完全融入了当地人的圈子。