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pankaj ghemawat > articles
Harvard Business Review

Ghemawat, Pankaj, and  Hout, Thomas
China vs the World: Whose Technology Is It?
Harvard Business Review
December 2010

In the city of Shanghai, a few churches conduct daily services for the faithful, just as churches all over the world do. However, China’s Patriotic Catholic Association doesn’t operate under the auspices of the Roman Catholic Church, which the Chinese government has banned. It is controlled by a state agency, the Religious Affairs Bureau. That’s how the Chinese government deals with foreign organizations, be they churches or companies. They are tolerated in China but can operate only under the state’s supervision. They can bring in their ideas if they deliver value to the country, but their operations will be circumscribed by China’s goals. If the value—or danger—from them is high, the government will create hybrid organizations that it can better control. This approach, which never ceases to shock foreigners, guides those who are boldly fashioning a new China

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