China: Why China Matters #1

Last Updated: 29 May 2018
Article by Peter C. Pang

China, the final economic frontier, the world's second-largest economy and a region with over 1.3 billion people, is a force to be reckoned and a partner, competitor and/or fellow superpower that must be fully understood, its policies be surgically dissected and its ambitions be fully respected.

Over the course of 2018, this series titled "Why China Matters" will examine China and its people in practical and anecdotal terms.  While some of these comments are limited to industries with which I have had direct and personal involvement and engagement (media, consumer products, IT, manufacturing, medical and pharmaceutical, automotive, lotteries, home shopping, apparel, and others), often there new frontiers I will be exploring and sharing with this audience which I hope will be engaging, controversial and incite conversation.

Let's face it, the Chinese people and the Chinese government have money, and lots of it

As the title of this series queries, Why China Matters:  it matters because this country, my country of such populous and hardworking people are trying to exceed and excel in every way or form, and with this kind of ambition, you have a formidable partner or competitor, depending on which side of the equation you are on.  Either way, it is sage advice that every strategist must keep in mind: you must have a dedicated China strategy, even if the strategy is not to enter China at this time with your products and services.  The latest central government policy of encouraging innovation is the kind of healthy policy that invigorates competition, loathe copycats, and pushes the millennials to venture into realms of science, medicine, clean tech, health services and technology and advanced manufacturing with government incentives and support. Let's face it, the Chinese people and the Chinese government have money, and lots of it. Almost daily there are investment tours by senior officials and private entrepreneurs to the US, UK, Canada, Australia, Germany, France, Africa, Brazil and the like – looking to buy technology, collaborate on new technological frontiers and to find ways to build on already a solid platform of technology and innovations.  Likewise, groups from China investment clubs, incubators, angel investment groups come to China to look for these very same investors, with vision, foresight and more importantly, the patience and understanding of the technology and what it can mean to a nation with such big appetite.

China is not a thief, but like every honest man or woman, given the opportunity indiscretions will occur.

In preparation for what will be a "two-man relay race", a healthy alliance and competition, like any good game, the "visitor" better be prepared because the game will be played on China's home court, with all the home court advantages.  This doesn't mean the home court advantage is unfair, because it isn't, but it does mean that the "visitor" should be well prepared with all the right ammunition:  IP protected, marketing strategy honed for the local market, distribution and manufacturing alliances assured and repatriation of profits rules thoroughly understood and ready to marshal.  As an old hand, I can't stress enough the importance of having a complete strategy – marketing, legal, manufacturing, repatriation, employment, sales, real estate, tax, and political risk assessment.    These are the variables of doing business in China but those who can maneuver through it will find success beyond their wildest imagination.  China single-handedly saved "GM" during the hard times, invested in Smithfield worth billions, bought brands that are beleaguered and revitalized them:  Geely's purchase of Volvo, Lenovo's acquisition of IBM's Thinkpad business, Tengzhong's  purchase of the Hummer brand, LeEco's acquisition of Vizio, and the list goes on.

Why China matters?

Why China matters?  It matters because it was a sleeping dragon, but the dragon is no longer staying put.  China, as stated in the Mao's Red Book, is a country of contradictions – both a friend and a competitor, an ally and a rogue alliance, a buyer and a seller.   In this series, we invite you to comment and contribute.  Our hope is to generate conversation and when that happens, commerce flows, energy and synergies are generated and the opaqueness becomes transparent so that a spade is called a spade.  Whether it be the A-bomb on North Korea or the F-bomb on China, we hope both can be avoided through understanding of where we are and where we are going.  Even if the final destinations are different.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions