Managing the cross-cultural aspects of relationships in China is often the most difficult aspect of conducting business in China. Western firms are also finding that majority ownership in a company does not in fact mean control of the company. Companies often approach the market in a manner similar to their system. The difference lies in the fact that unlike the Western approach to control of enterprises, in China a majority shareholder can make all of the decisions, but may not be able to enforce them and put them into practice. Although a lot of companies are frustrated by the business environment in China, most do not complain publicly for obvious reasons.
Firms are worried about taking themselves out of competition for contracts.
Some of the silent complaints deal with the method of conducting business and in particular the way ventures are set up. Ventures are set up essentially as partnerships between companies and the Chinese State. Although automakers should view China as a land of opportunity, success has a potential downside in China. Companies are investing in what they hope will be a rapidly expanding market, while the Chinese have the goal of building competitive industries through alliances. The Chinese objective to become internationally competitive will be achieved by technology transfer from Western firms.