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Why foreign firms struggle to break into China

The business landscape is dominated by domestic mega firms operating in a tight matrix of political influence.

The skyline of Guangzhou in China's Guangdong province, lit to celebrate the 70th anniversary of the founding of China this week. Foreign firms should be aware that even if they were to break into the China market, the domestic market there is facing long-term headwinds. For one, the working-age population is on the wane.

FOR growth-starved Western entrepreneurs, the Chinese market is appealing. Think about it: Since 1995, China's economy has grown by a factor of 18.5, from US$735 billion to US$13.6 trillion (excluding Hong Kong). In terms of purchasing power parity, it is now the No. 1 economy in the world....

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