China is at a turning point, and practices once good enough to support a market entry strategy no longer assure success. Whether a company views China as a manufacturing base, an attractive market, or both, world-class execution will be necessary to succeed, and success there will be needed to survive not only there but around the globe. As China solidifies its roles as a market, a global manufacturer, and a talent pool, executives will find that they must lead in China to lead in the rest of the world.
Unique practices developed to enter the market will no longer suffice in China's increasingly competitive environment, particularly if Chinese operations are held to lower performance standards. Instead, multinationals must lead with their strength: world-class processes honed over many years in established markets and adapted to Chinese realities.
Source: McKinsey Quarterly, http://www.mckinseyquarterly.com