on October 6, according to the New York times reported, from Microsoft, Google and Facebook, many American technology companies operating in China is difficult or even unable to continue. But there’s a company has found a way of business, this is the social network LinkedIn.
LinkedIn’s experience is trying to open in the Chinese market situation of silicon valley companies provides a template and warning, with great interest in all other technology companies in the United States, want to know how LinkedIn to find balance. Brokerage Needham Internet analyst Kerry Rice (Kerry Rice), said: “over the next five years, things will progress in a positive way, so to enter the Chinese is very important today. If LinkedIn, think about the method of how to adapt to the business environment in China, apparently, other company also can imitate.”
LinkedIn’s English website attracted 4 million users in China, and not let the Chinese government is focusing too much on, but the company hopes to gain more users, 140 million professionals in China in February this year launched a Chinese website. Chinese website attracted about 1 million new users, appears to have been the acquiescence of the Chinese government, even in the suppression of other Internet services such as sets and yahoo, the site also has not been blocked.
it is the secret to success? In addition to the company is willing to abide by the relevant Chinese laws, also let two local connections higher vc firms gain a 7% stake in its local business. Experts say, keep good relationship with local companies to the hope that foreign Internet companies operating in China is very important.
for foreign companies in China science and technology industry to carry out the business advice consulting firm BDA China, founder of Duncan Clark (Duncan Clark) said: “the government needs to know who they can for orders, as foreign companies you need to know this, or it will be closed.”
all LinkedIn spokesman Hani · he (Hani Durzy), said the company set up a Chinese website because they believe that “just like the rest of the world, creating economic opportunities profound impact on the lives of Chinese people”. He also said: “although we strongly support the freedom of expression, but we also recognize that we need to conform to the requirements of the Chinese government, in order to operate in China, decided to continue to operate in China is our weigh repeatedly.”
LinkedIn in China also faced competition recruitment and 51 job website, after 2 more users than LinkedIn. LinkedIn with local companies and sequoia capital China, a subsidiary of China’s broadband industry fund cooperation, help them to maintain good relations with Chinese officials. China’s broadband industry fund spokesman Kevin Wang (Kevin Wang said: “companies such as Facebook and Twitter in a lot of problems, we think one of the key reasons is the lack of communication with the government, even there is no communication.”
Has been very strong local partner LinkedIn motivation of success. According to the cooperation agreement, if meet the certain conditions, they can get $20 million LinkedIn Chinese website in addition 21% of the shares. LinkedIn has kept control, ensure that most of the profits and bear the corresponding risks.
according to Chinese law, LinkedIn will eventually need access to the Internet content provider license to continue to operate, this license is good also have bad place, because the company needs to store the information of Chinese users in China. Despite the challenges, LinkedIn of China’s business is still optimistic.
all LinkedIn spokesman, said: “in the end we consider is, for China’s millions of professionals to provide ways to expand economic opportunities, we want to do it well, because we will continue to listen and learn experience.” (wood XiuLin)
source: netease science and technology