Government Wants The Big-Data – Foreign Companies in China Wont Cooperate
People constantly produce a lot of data by using social media. Companies constantly analyze this big-data to understand consumer behavior. Every information you type on Facebook is crypted. That means governments cannot control the shared information. The Chinese government wants the big-data to exercise better control and provide security. Substitute platforms like YouKu (Chinese YouTube) have a good relationship with the government. Which means that, unlike foreign companies in China, they cooperate and share information to have the right to operate in China.
The Government Carefully Monitors And Censors Foreign Companies In China
Foreign companies are usually not willing to censor the search results of their search-engines. Another problem with social media is that they collect serious data. The data is enough to have leverage against other countries. In other words, social media is a weapon, if in the right hands. But the same is the case with propaganda and entertainment. Only a handful of movies from hollywood make it into Chinese cinemas. Those who made it, do not contain any politically sensitive topics. Political matters on the other side are not presented in favor of other countries.
Protectionism Is Harassing Foreign Companies In China
China wants to develop its own tech-sector instead of letting foreign companies compete in the market. The common pattern is, that foreign companies enter the market until a Chinese company provides a similar service. Then the government bans or harasses the foreign company until it leaves the market. The sad truth is that in the current world of globalization, the idea of open and fair trade is an illusion in many countries of this world. There are cases, where the Chinese government was supporting violation of copy rights for the sake of pushing its own companies in China.
Foreign companies in CHina that faced challenges in China
UBER : Uber is a transportation company, that lets you use your smart phone to find a car to pick you up like a taxi in exchange for money. Entering China and the Chinese market, the company lost 2 billion Dollars in China. Uber did this by lowering the costs for using the app and supplementing the driver’s salary. But ironically people used the application for free rides and dates. People used expensive cars to attract users on Uber with the goal to attract the opposite sex, not to earn money. The major problem was, that Uber lowered the prices, hoping to get more users. But as it turned out, people used Uber for an entirely different reason. People basically tried to use Uber as a dating application.
The foreign company in China was also facing emerging competition in the local market from “didi kuaidi”, a Chinese equivalent. Soon didi kuadi was controlling 80% of the Chinese market. In 2015 the Beijing government declared Uber illegal and searched all the company’s offices in Guangzhou. Uber eventually had to leave the market.
APPLE : Apple had several issues in China. One huge issue was copyright infringement. A cellphone case manufacturer in China used “iPhone” as his brand name, which made Apple fire a law case against the manufacturer, but lost in all three court proceedings. The court’s decision was based on the explanation, that apple was not able to prove, that it brand was popular in China. Apple was still an unknown brand in China, when the trademark “iPhone” was registered by the accessory manufacturer “xintong tiandi”. The Chinese courts go with those, who register their brand first. Even worst copyright infringements in China were committed in the past by launching fake apple stores.