What Can Us Government Learn About How China Promotes Their Companies?

February 2, 2018 | Author: | Posted in Reference and Education

China has over 700 million internet users, which is more than the US and Europe combined. The market in China is incredibly colossal. Consider Alibaba for example. The retail store has more volume than Amazon and eBay combined. All these facts show that China has been leapfrogging must of the western countries.

Most people use mobiles – probably because they didn’t have landlines, or those stupid looking phones or desktop phones.

And, unlike West, China never got a chance to access the retail. They only have 15 years of retail, not like Germany, which has more than 150 years.

Chinese people use a phone because they don’t have the same history of banking and credit that western company has. This habit has resulted in Chinese people paying with their phone, not with cash.

And, do you know who the biggest players in the Chinese market are? They are:

Sina Weibo
and, Baidu

What’s their secret?

The answer is simple: they work with the government very carefully, and the decision-making process is very brief.

Working hours in China are 10 hours a day (9 am to 9 pm), and they work six days a week.

According to CCTV (China’s state broadcaster), the average salary in China is 6,320 (Hong Kong $7,458) in 2016 – an 8% rise from 6,700 yuan (or HK $7,910) in 2015.

People have one week of holiday in China.

So, when most western companies enter into China, they don’t accept this system.

But, since you’re running a business in China, and not in San Francisco, you’ll have to expect certain things to break.

So, let it go – and expect things will break.

Because, to become successful in China, you need to let things break. The Asian giant is investing in startups more (4.4 times more) than in Europe.

China is also synonymous with “WeChat” nowadays. It’s very convenient for people because they can have almost everything they want using the same app.

The western countries (the US and Europe) should be working hand-in-hand to enter into this lucrative market.

Doing a business in China may “feel” like declaring a world war III for western companies.

In the beginning, the BIG FOURS were very good at “one thing” (although it was entirely different for every one of them).

The first batch of entrepreneurs didn’t just retire and pack their bag and went home. They stayed and crushed their competition. And, now they are competing with each other. Then, they’ll go to the rest of Asia. And finally, they’ll go to the US and Europe and control ALL commerce (that’s what their game plan is).

In the US, entrepreneurs don’t have the same spirit to fight.

Yes, of course, entering China and doing business can be difficult, if not impossible, but it’s also a great opportunity – but it will only come through a good fight.

The food delivery and the cab industry are in a war in China. Almost 50% of the Chinese people have been feeding 50% off for a year from VC money.  Over 2 billion dollars have been spent on taxi subsidies per company. Uber Technologies Inc fought hard and won the battle.

What’s the Chinese Government game plan?

The government is responsible for all the game that’s happening in China, says “experts.”

As an idea, the Government sucks.

The wages in the country is excelling four times. For a long time, the Chinese government has been spending state resources on housing and infrastructure. Now, they don’t need any more roads (that’s done already).

How will they support their economy?

The answer is simple: keep investing in startups – and that’s where a lot of work is needed. Recently, the government spent over $250 billion into VCs – and most of that money will go down the drain. However, there’s the good news: the state money has been mixed with the private money, and the decisions are being taken by private money.

Yes, the Chinese government is committed to creating new jobs for its people. However, there’s a high demand for a really talented people in China – and most companies hire them from the outside.

A LOT of their smart people went overseas, and whatever is left is very expensive. Right now, they hire people from Taiwan, as the labor cost is almost half the price.

Chinese Modernization: Is it really innovative?

In China, you won’t find massive development (and revolutionary) innovation, but the nation is innovative.

They just don’t like to re-invent the wheel. If China wants to learn, they hire the best ships from the best countries – and learn.

So what can the US learn from China?

Try to experiment more. Try your experiments to a subgroup of your audience before investing big.

And, one more thing!

Become more adaptive. Yeah, it’s difficult for a lot of us, but if you want to win the battle, you’ll have to. Try it, and if it doesn’t work, try again. Because if we don’t, China will soon take over the rest of the world.

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