ENTERPRISE STRATEGY
“ THE COUNTRY REMAINS A LUCRATIVE MARKET FOR TECH FIRMS THAT TAKE THE RIGHT APPROACH ”
ALEX BARTON MANAGING DIRECTOR , INTRALINK and China is an important market , then you are likely to start with a WFOE as it offers more control and is easier to operate .
Partnership is another option , according to Schaub . “ In such cases you will give up control and let the China partner run the show . leaving you to concentrate on other markets . There may well be divergence . If you are a Western tech company that faces legal restrictions in respect of investment or operation , then you may need to do a JV to set up in China ( but this is rare ). When planning the entry , it is equally important to plan how you will exit .”
Heeding caution , Schaub says that IP protection is another natural fear for any business operating in the territory , with Schaub adding that China is getting better when it comes to this : “ IP litigation is increasingly popular and Chinese companies are also taking action . It ’ s important for western companies to secure rights to their brand ( China is first to file jurisdiction for trademarks ); create and own the Chinese brand ; register patents asap ; and for many tech companies , it ’ s worth registering the copyright in their software ( not legally required but does make enforcement easier and it is very affordable .)
MAJOR ISSUES FOR TECH FIRMS IN CHINA China is an extremely fast-paced business environment , where innovation is rapid and local competitors move fast . As Barton says , “ If you can ’ t compete on pace , make sure you can compete well on features .”
Service expectations are also exceptionally high from Chinese customers ,
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