Comments on: EBay Rethinks China; Will Close Own Sites, Open New One In JV With Tom Online: Report http://paidcontent.org/2006/12/19/ebay-rethinks-china-will-close-own-sites-open-new-one-in-jv-with-tom-online/ The economics of digital content Mon, 20 May 2013 23:21:42 +0000 hourly 1 http://wordpress.com/ By: China Law Blog http://paidcontent.org/2006/12/19/ebay-rethinks-china-will-close-own-sites-open-new-one-in-jv-with-tom-online/#comment-46531 Wed, 20 Dec 2006 04:01:48 +0000 http://paidcontent.wp.gostage.it/2006/12/19/ebay-rethinks-china-will-close-own-sites-open-new-one-in-jv-with-tom-online/#comment-46531 This is a huge defeat for E-bay. Some are saying that this is their way of ending up with half a loaf, but actually, they are getting only 49% of a loaf they probably will be unable to control, which in the end may very well end up translating into the crumbs from the end of the loaf. Becoming a minority partner in a Chinese joint venture these days is, almost by definition, a recognition of defeat. Paying a lot for this "privilege" as E-bay has done here …. well that borders on ….

]]> By: Jay Ma http://paidcontent.org/2006/12/19/ebay-rethinks-china-will-close-own-sites-open-new-one-in-jv-with-tom-online/#comment-46530 Tue, 19 Dec 2006 21:40:43 +0000 http://paidcontent.wp.gostage.it/2006/12/19/ebay-rethinks-china-will-close-own-sites-open-new-one-in-jv-with-tom-online/#comment-46530 Big US internet companies are guaranteed to fail in China because they don’t understand Chinese people and Chinese market. After Yahoo and EBay, Google is the next, no exception. Where they are (or were) innovative and user experience driven in US, they are totally ignorant of users and UE innovations in China.

Instead of acquiring and ruining Chinese local companies (Yahoo and EBay has done that, and that’s Google’s plan for next year), they should invest on and incubate local Chinese companies, just as what IDG VC has been doing.

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