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Ask HN: Do US companies regret entering China?

46 点作者 dmfjfj超过 5 年前
Some US companies flourish in China (e.g. KFC, Costco) while most end up being defeated by local rivals due to multitude of reasons. For those that entered, has the money and effort been worth it? What ended up costing more of your time than expected?

12 条评论

anonu超过 5 年前
Abro certainly regretted it: <a href="https:&#x2F;&#x2F;www.npr.org&#x2F;sections&#x2F;money&#x2F;2019&#x2F;03&#x2F;15&#x2F;702643451&#x2F;episode-900-the-stolen-company" rel="nofollow">https:&#x2F;&#x2F;www.npr.org&#x2F;sections&#x2F;money&#x2F;2019&#x2F;03&#x2F;15&#x2F;702643451&#x2F;epis...</a>
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mscasts超过 5 年前
I know of a Swedish company that made a deal with a Chinese company, the Swedish company no longer exist.
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davismwfl超过 5 年前
Micron regrets it, essentially having a significant amount of their chip IP stolen by Chinese firms they were involved with one way or another.
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smacktoward超过 5 年前
Who ever regretted training their replacement?
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TRossi超过 5 年前
It would be nice to show statistics, isolated cases are rarely really interesting to discuss. I&#x27;ve been in China recently and there are plenty of foreign brands, the most successful ones are those who adapt their message, naming, colours, etc.. to the Chinese taste, which of course should be expected.
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gourou超过 5 年前
In &quot;AI Superpowers: China, Silicon Valley, and the New World Order&quot;, Kai-Fu Lee (former president of Google China) says many US companies don&#x27;t give enough resources to their Chinese branch and that&#x27;s why they fail. The Chinese internet ecosystem being so different than the Western one.<p>For example, Western users are used to refining their search query and clicking a single link among the results. Whereas Chinese users click most of the links and are used to them opening in different tabs.<p>However, it took months of convincing to get Google to create a new tab when clicking a link in search results.<p><a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;AI_Superpowers" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;AI_Superpowers</a>
css超过 5 年前
Google probably regretted it: <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Google_China" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Google_China</a>
danzig13超过 5 年前
Prior to my involvement in my current company, they were discussing setting up production in China. After my involvement in the company, I have no idea how they thought they could pull it off. For whatever reason, they did not do it.<p>Rumor is a Chinese owned company is already ripping our products off; I can only imagine if we had production occurring there.
baybal2超过 5 年前
This will be a very interesting topic to talk about for me, I beg and hope that it will not be subject to &quot;automatic&quot; deranking.<p>The topic getting controversial, by far does not indicate it being unworthy of discussion.
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Leary超过 5 年前
Depends on the business model. Some businesses cannot operate without outsourcing manufacturing to China. China also has more potential for growth than US and Europe combined.
dirtyid超过 5 年前
For a holistic overview it&#x27;s useful to read Chamber of Commerce surveys, there&#x27;s a recent one by CGCC (China General Chamber of Commerce - US). The basic gist is that growing market and financial motives play biggest role in something like 85% of respondents. Kind of no-shit take away. Don&#x27;t rely on cherry picked anecdotes of XYZ failed ventures or attributing &quot;regret&quot; because some IP got stolen. There was an interview covering a recent American Chamber of Commerce in Shanghai poll of US data on top priorities for current trade talks and 0.4% of respondents think force tech transfer is an important issue. Which should be obvious since the vast majority of foreign businesses operating in China don&#x27;t have extremely technical IP that can&#x27;t be easily replicated, or have very well funded and vocal lobbying groups state side, or is an legitimate intersection of commerce and security with respect to dual use technology, or even that the cost of stolen IP is not factored into these business decisions in the first place. Many US companies are not in China as supply chain operators, they&#x27;re there to meet demands of Chinese consumers and serve Chinese market to the point where China is a significant share of their revenue. Another example, latest U.S. China Business Council&#x27;s (USCBC) survey tldr was basically US companies overwhelmingly convinced Chinese companies receive (alledged) unfair state subsidies but they literally don&#x27;t care because even with the tradewar, 97% of respondents said their China operations were profitable which is UP from 85% in 2015. There&#x27;s also good podcasts like The Trade Guys (CSIS), Sinica &#x2F; ChinaEconTalk that covers these topics by actual subject matter experts.<p>E: I think it&#x27;s important to highlight that while that data suggests profit seeking US companies overwhelmingly do not regret entering China, that doesn&#x27;t mean it&#x27;s beneficial to long term US interests. You have to understand that on paper, China - US trade accounts for a few percentage points of each other&#x27;s GDP, and indeed both economies are actually not very trade dependent. Many companies and people will still get hurt, the pain will be disproportionately applied, but this tradewar is mostly political theater that both leaders are exploiting since there is no existential risk.
robin_reala超过 5 年前
Why US companies specifically?
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