Wednesday, December 28, 2016

Never Open a Business in China

Here is an academic teaching in China being interviewed on foreigners starting-up business in China.
I think it is very good. Firstly, the support of the Chinese government is rather extensive, from incubators to subsidies, and a lot of supportive measures to facilitate entrepreneurship and innovation. However, there is much more that makes China a great place for entrepreneurs, including foreign entrepreneurs.
Well, he is conventional. All of these elements are counter-productive, and lead to an inauthentic business built on sand.
Fourthly, the policy and regulation is still changing and upgrading, which may mean new opportunities. Industries like internet finance, digital health and cross border e-commerce, are not fully regulated yet. So it is a good living laboratory for entrepreneurs to try out their business ideas. At the same time, when businesses grow up and industries mature, a better regulated environment in terms of consistency and clarity is desired.
Aha.  Not fully regulated yet.  I wonder what "fully regulated" looks like?  Here again, we see China replacing USA by the same means the USA became #1.  If continued, China will end up like USA as well, only faster.  I do wish China would be Chinese, not USA.

At least he has this right:
I do research on foreign entrepreneurs in Shanghai, and also mentor in an incubator to help foreign entrepreneurs to start and grow business in China. I think the first key obstacle for them is to understand Chinese customers, to understand what they really want.
The customer is most important.  And getting the offer right is the hardest part.  Very good. And if so, then why would anyone need the four elements he is quoted as praising in the article.  Of course, not at all.  Always start with the customer when starting-up.

Never open up your own business in China.  Just sell to someone Chinese with a business in China.

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