China is a growing market that also has a growing business landscape. More and more patents are being filed in China, which was “a doubling of the global percentage of patents granted to Chinese inventors since 2005”, according to this McKinsey article from February 2012.
Not only that, but Chinese companies are more comfortable with getting a first generation product into the market at a much faster rate than other developed countries’ companies prefer. They use a technique that includes modifications to products to very quickly improve them with each successive release.
Conversely, it seems, Chinese companies are less willing to take risks. Many executives do not like to operate outside their geography or language.
Innovation in China is expanding both in business to consumer and business to business operations. Competition from this country, if Chinese companies feel the need to move abroad, will be intense.
China, while causing the US some concerns, has thousands of companies that could do quite well in expanding globally. Most companies have chosen not to, so far. We’ll see what the future brings.Picture Source