Why big American businesses fail in China

by Rachel Baker on September 23, 2013

Here’s a look at why American businesses fail in China after only a few years.

Since China opened up to foreign investment in the late 1970s, some of America’s most powerful corporations have gone confidently into the People’s Republic, only to stagger out a few years later, battered, confused, and defeated.

It’s not because the businesses were incompetent. Many of the biggest failures belong to the Fortune 500: Mattel, eBay, Google, Home Depot. All of these have thrived in markets around the world, but not China.



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