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I think that these corporate responses can only be thought of as "rational" through a _very_ short-term lens due to the nature of _how_ foreign companies are pe
by jkachmar 7y ago
I think that these corporate responses can only be thought of as "rational" through a _very_ short-term lens due to the nature of _how_ foreign companies are permitted to operate within China.
The CPC explicitly exerts a lot of control over the Chinese market, and they have absolutely no qualms over doing whatever they can to reduce foreign influence and enrich local players (cf. COMAC's C919 development, namely how much of it has been the result of IP theft from foreign partners).
So yeah, you can definitely look at "competing" in China as a way to see quarterly growth, but it feels inevitable that any company that gets _real_ traction would be targeted by the CPC in favor of a domestic company that would more directly enrich them/the country.
While I can understand the financial motivations for wanting to enter this market, I think this is very different from how most other modern nation-states operate and these responses. Blizzard et al.'s responses definitely smack of corporate greed more than they do of rational action, to me.
EDIT: Ah, now that I've posted this I see your comment below where you elucidate a bit on "bounded rationality"; we probably agree, then.
I'll leave this up in case it sparks some more interesting commentary from others :)
- plorkyeran 7y agoYeah, the whole notion of "the Chinese market is too big to ignore" carries the assumption that China will allow foreign companies to make money off the Chinese market. It's easy to see why multinationals would assume that as there's been plenty of other markets that were unhappy about American companies pushing their way in but were unable to do anything about that, but China does have a successful track record of pushing back.