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1、Opportunities&ChallengesforMultinationalsinChina:LearningfromtheMicrosoftExperienceKai-FuLeeCorporateVicePresident MicrosoftCorporationTalkOutlineChinaOpportunity6IngredientstoSuccessinChinaMicrosoft’sPresenceinChinaEarlystrugglesRecentsuccessesConclus
2、ionChinaOpportunityHugegrowingmarket“ThesinglemostimportantthingtohappeninourlifetimewillbetheemergenceofChina.”–JohnThornton,formerPresidentofGoldmanSachs NowaProfessoratTsinghuaUniversityGDPgrowth9%peryearsince1978.Consumerssaving$1trillionperyear.20
3、02:Chinabecame#1mobilephonemarket.2004:Chinawillbecome#2PCmarket.Next5Years:Software&servicesCAGR=50%!ChinaOpportunityWorld’sLargestLaborForce“Throughskillfulcontrolofresidency,China’s900millionruralresidentswillgraduallymovetocitiesandtakejobsinmanufa
4、cturingorinformationprocessing,perhapsat20-30millionperyear.ThiscouldgiveChinaasustainablesupplyoflow-costlaborforthenext20-30years.”–KenichiOhmae,TheChinaImpact.TraditionalindustriesManycitieswithgoodinfrastructurePeopleinflowfromruraltocitiesExcellen
5、tprocess&know-howinmanufacturingKnowledgeeconomy150,000computergraduates/yearGreatemphasisoneducationButIT&softwaresignificantlylagIndiaMarketOpportunityisLucrativeVolkswagen40%marketshareinChinaMotorola20%ofglobalrevenuecomesfromChinaKodakIn4years,Chi
6、nawentfrom17thto2ndIntel$4+billionrevenueinChinaL’Oreal“Imagine,1.3billionlips!”-LindsayOwen-Jones,CEO,L’Oreal.6IngredientstoSuccessinChinaChallenges&SuccessfulFormulaBuildstronggovernmentrelationshipsPlaybyChina’smarketrulesMakealong-termcommitmentThe
7、localeconomyisthetoppriorityNurturelocalpeopleBuildtrust,notPRBuildStrongGovernmentRelationshipsUniquepowerofgovernmentRelationshipsrequiredatalllevelsThespiritofthelawmattersmoreChina'scultureisbuiltontrust,relationships,mutualrespect.Theconceptof"fac
8、e"isveryimportant.AvoidsensitivitiesandfindeveryopportunitytomakeChinalookgoodNegotiationsarebottom-upandinformal.“Itcannotbeoverstatedtheimportanceofaccommodating thegovernment."—JohnStuttard,theNewSilkRoad.PlaybyChina’sMarketRulesExpe
