The China market for technology companies is huge and Chinese technology companies are getting stronger and going global at an accelerated pace. While China shouldn’t be ignored, most Western technology executives have heard the many stories of failed or loss making China efforts or have experienced it themselves. Even in China today, it is still easy to be fooled by the lure of huge numbers and opportunities. Attractive deals and partnerships do exist but they often come at a cost.
We typically don’t recommend entering China unless you are committed and have the resources or need to be in the market. However, for those that have made the decision to address China or cooperate with Chinese companies going global, there are ways to de-risk the program and significantly increases your chances of success.
Consider many of the strategies often used to engage with China. Many companies start with a China “fly-in-fly-out” strategy trying to develop China from afar by leveraging their investors or relationship network for introductions to start having conversations in the market. Many others start by setting up a China legal entity and hiring staff and beginning the process to see how and with who they can monetize China.Read More >