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Well I actually know people who like doing business in China, namely my parents, who own a medium sized tech company there. There absolutely still is a differe
by Cookingboy 10y ago
Well I actually know people who like doing business in China, namely my parents, who own a medium sized tech company there.
There absolutely still is a difference between private and state-owned companies. There are even cases where Huawei loses government contracts to Cisco. Like you said, the water is murky in China, and the favor of Chinese government cannot just be bought by a tiny investment such as this.
There is no guarantee that just because you are a Chinese company, the government will be on your good side. At one point Alipay was almost banned due to some central bank regulation. Didi also has a competitor named Kuaidi, which for all we know can have even deeper connections with the CPC.
- zhte415 10y agoDidi acquired Kuaidi some time ago. Changed the name to Didi Kuaidi. Name changed again a little while ago to Didi Chuxing. To me, this deal is about "You can sell XXX, if you do YYY" YYY may be investment, technology transfer, many things. But a lot of China deals and inward investment in R&D, Operations or Technology are in fact driven by sales. "We need to sell this, and in order to do so, we've been told we also need to YYY."
- radicsge 10y agoI suspect the same
- radicsge 10y agoWhy they win, we dont know, but the government ask for gifts time-to-time: http://www.bloomberg.com/news/articles/2015-06-17/cisco-to-invest-10-billion-in-china-to-create-jobs-promote-r-d http://www.bloomberg.com/news/articles/2015-06-17/cisco-to-i... there are similar stories for Microsoft etc, but even Morgan Stanley almost went to bankruptcy in 2008 but in 2009 jan, fully pledges itself to help to build one of the department for Beijing children hospital till its estimated finish date 2011?