Today’s article in the New York Times about Apple’s strategy in China got me thinking about China’s allure to businesses around the world. Ever since the 17th century, the West has fantasized about the huge Chinese market and what it could do for their companies.
However, the fact is that China remains a difficult place to do business primarily due to the lack of transparency and due process. As long as that is lacking, businesses will have to factor in risks due to a sudden shift in government policies which can be domestic in nature and hard for foreign businesses to divine.
Getting back to Apple, though, they have a great shot at penetrating the market due to Apple’s emphasis on alluring quality and design. Based on black market consumption, there is clear interest. They just need to proceed carefully.