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by realitycheckx 3703 days ago
It is a myth that Chinese government bans foreign companies for the explicit goal of protecting local players. Chinese businessmen are better at figuring out what works in China, than some arrogant foreigners - that & few other factors is why they win in China[1].

The goal of banning certain companies is not protectionism of local companies, but protection of Chinese government and the bureaucrats(by censoring certain media and disabling channels that could be used for forming groups, which could upset social order). Remember, Chinese government doesn't respond to people or commercial entities. They don't need the money for political campaigns from entrepreneurs, which is why they don't need to promise them anything like ban of foreign companies.

[1]https://www.linkedin.com/pulse/20130605230952-18448-why-ebay...

1 comments

Interesting - if you're still getting banned, but the cause is censorship and control rather than protecting local companies that's arguably even worse.

I guess it might only affect information companies though so maybe it's less widespread.

Yes - Startbucks, Walmart, McDonalds and many other International companies are NOT banned in China. One thing these companies that are not banned have in common is that they do NOT threaten the social order of the country. Could Starbucks help start a revolution, like Facebook could? No, that is why Startbucks is not banned and Facebook is. You know, there are many local competitors of Starbucks, so why isn't government banning Starbucks to protect Chinese companies? Because they don't care about opinions of people or local_entrepreneurs. Their goal is not protectionism. Uber will not be banned, since it is harmless to government.