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The risks and difficulties of doing business in China

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The solution is an offshoot of the case study entitled, "Microsoft Opens the Gates: Patent, Piracy, and Political Challenges in China". It deals with a discourse on the risks that Microsoft has faced in operating in China and dealing with the Chinese government and whether these risks as increasing, diminishing, or changing in the future. There was also discussion whether these risks are unique to China or present also in other countries.
The discussion also specified solutions done by Microsoft to manage the political risks and what solutions worked best.

An exhaustive listing of world ranking in software piracy is also included.

Attached file: "Exploring the Challenges of Doing Business in China".

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The risks that Microsoft has faced in operating in China and dealing with the Chinese government

These are the risks that Microsoft faced in China:
- widespread piracy of software products (Intellectual Property Rights violations
- promotion of Microsoft's competitor products
- discriminatory procurement practices
- development of Chinese indigenous software for export
- Chinese government favored open-source technology like Linux

Are these risks as increasing, diminishing, or changing in the future?

With the trend going on in China, with an 86% of software that is pirated, Microsoft will at the losing end. Although the Chinese government toned down its hostile attitude towards Microsoft, it might be cooking something that would further diminish the American software company. The Chinese are cunning and Microsoft could be in the wrong direction by trusting them. Remember, the Chinese are more concerned with their own interests than in American interests.

Are these risks unique to China or present in other developing countries?

These risks are not unique in China. These risks happen even in developed and developing countries. In terms of piracy, China is at the 17th position when it comes to world ranking of software piracy. Other countries in the rank are:

2 Moldova:92% 
2 Azerbaijan:92% 
2 Bangladesh:92% 
5 Zimbabwe:91% 
6 Sri Lanka:90% 
7 Yemen:89% 
8 Libya:88% 
9 Venezuela:87% 
10 Iraq:85% 
10 Vietnam:85% 
12 Algeria:84% 
12 Cameroon:84% 
12 Pakistan:84% 
12 Indonesia:84% 
16 Ukraine:83% 
17 China:82% 
17 Botswana:82% 
17 Zambia:82% 
17 Nigeria:82% 
17 Bolivia:82% 
17 Paraguay:82% 
23 El Salvador:81% 
23 Côte d'Ivoire:81% 
23 Kenya:81% 
26 Guatemala:80% 
26 ...

Solution Summary

The solution shows the risks and difficulties Microsoft faced in doing business in China.