An open China market is not a ticket to success for foreign companies, unless they change their mindset

Edward Tse says while foreign companies clamour for China to speed up its market reforms, they need to rethink their strategies to survive in an increasingly competitive business environment

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Chinese companies are known for bring fast, nimble and innovative. Foreign multinationals should become “more Chinese than the Chinese”. Illustration: Craig Stephens

Published: 4:00pm, 20 Apr 2018Updated: 7:42pm, 20 Apr 2018

At this year’s Boao Forum, President Xi Jinping reiterated China’s commitment to further open the country’s market to foreign companies and improve intellectual property rights protection, an issue that has long been a concern for foreign companies operating in China.

A couple of weeks before Xi’s speech, at a press conference at the end of China’s Two Sessions, Premier Li Keqiang said China would not force foreign companies to transfer their proprietary technology to China.

While some say the plans lack detail, the leadership’s commitment to opening up China further for foreign business shouldn’t be underestimated.

So, what are the implications for foreign multinational corporations? Is there anything CEOs should do differently?

For a long time, some Western politicians, business executives, lobbyists and the media have held the view that foreign companies can’t grasp all the opportunities in China because of a lack of market access, unfair competition and poor intellectual property rights protection.