Jack Ma, one of the richest men in China, told off US companies by telling them to stop complaining about Chinese government policies that stifle growth of foreign companies in the country.
While addressing the recent World Internet Conference in Wuzhen China, Jack Ma said:
“When you determine to come, prepare for it. Follow the rules and laws and spend 10 years.”
“This is not a market that you can come and go.”
Though his statement would have certainly drawn a huge round of applause from his audience, the truth is far from it.
China has an extremely smart policy when it comes to handling foreign companies that operate in its territories.
It picks and chooses the industries where it is ready to accept foreign players. And, in certain cases, it will create barriers that prioritise its own companies against foreign entities, especially if they’re operating in forward or path-breaking technologies.
Way back in 2011, General Motors had a huge dream of pushing it’s “Chevrolet Volt” in China.
But China had other ideas.
At the time, GM officials told the New York Times that the Chinese government is refusing to let the Volt qualify for subsidies of upto $19,300 a car unless G.M agrees to transfer engineering secrets to its Chinese partners.
Talk about a level playing field!
So, essentially, Chinese companies with old technologies walked away with subsidies while a car with much better tech at that time was forced to compete at a totally different price point.
In a way, yes, Jack Ma certainly does have a point: “Follow the rules and laws” by doing exactly what you’re told to do. Otherwise, just pack up and go home – or spend ten years waiting for something to finally go your way.
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