On May 14th IsCham brought together experts from Tsinghua X-labs incubator to introduce the Chinese start up scene. Tal Badt, Director of Business Development for X-labexplained the differences between Chinese and Western start ups, and the challenges faced by foreign start ups in the local eco-system.
Ziv Rotenberg, expert on intellectual property strategy and a mentor in X-labs, shared the current situation of IP in China and its role as a strategic asset of a company. He concluded with a few case studies of foreign companies in China who had lost control of their IP or were sued by Chinese companies over IP violations.
Finally the speakers answered the hot question: “Should I enter China?”
The answer is not simple, as many factors are involved.
But if there is one take away from their interesting discussion, was that- before entering this huge potential market, a foreign company must do its homework:
- 1.Figure out early on whether their focus is on China or the West.
- 2.Think strategically when it comes to – investment, management attention, and effort
- 3.Understand the local environment
- 4.You need an IP in China– without it you’re exposed
- 5.It’s going to cost you, prepare better cash flow.