There is an old Chinese proverb that says ‘ a little impatience will spoil great plans .’ With US and China trade wars escalating again , and warnings around ethics , rights and intellectual property , should western technology providers steer clear of the Chinese minefield or sail bravely into the dangerous winds that so often accompany this rewarding but fiercely competitive market ?
China ’ s rise to the second largest economy in the world is mainly due to foreign direct investment it has received since it started opening its economy , estimated to be around USD $ 1.6 tn .
Oracle remains in a strong market position but some would argue that it has come at a negative PR cost to the brand . SAP and Alibaba forged a successful partnership in 2018 and SAP continues to make in-roads in the country . Notably there have been recent exits for Yahoo and LinkedIn too , but does this bely a tech market that blossoms quietly in the shadow of Big Tech ?
Dr . Edward Tse of Gao Teng Advisory is considered the “ Father of management consulting in China ” according to Australia ’ s InTheBlack magazine . China Daily has also labelled Dr . Tse as “ China ’ s leading management guru ”. Author of several books including the PwC recommended ‘ The China Strategy ’, Tse elaborates on the possibilities of technology , saying that “ after well over one decade of innovations that rode on the wireless internet , China has now entered into a new era of technology that is epitomised by new disruptive technologies such as 5G , AI , blockchain and cloud computing .”
Tse cites evolving policies and regulations ,
as well as demand pattern changes , as driving new tech innovations . In Dr . Tse ’ s words , “ new players , including both foreign and local , will emerge along the way , creating even more competition and collaboration across the board . As such , we can expect generations of newer and more competitive players emerging in due course , further underscoring China ’ s role as an epicenter for innovation going forward .”
Alex Barton is Managing Director of Intralink China , an international business development consultancy with a 30-year track record of helping western tech firms expand in China , Japan , South Korea and Taiwan . Barton leads Intralink ’ s teams in
90 January 2022