Will China Peak Again? A Neutral Overview

Seven Tips to succeed as a business in China.

Few venture to China just for fun; the majority still go for business. When I landed in Beijing for the first time, I was ready to dive into a world that would challenge everything I thought I knew about ambition, hustle, and opportunity. I wasn’t there for selfies in the Forbidden City or a rigid tourist itinerary, although I did visit the Great Wall, which turned out to be a great experience. My deal with myself? Stay open, soak it in, and let China reveal itself.

The Scene

Beijing doesn’t gently welcome you — it sweeps you into its rhythm. Its layout, with wide avenues and monumental buildings, echoes Soviet-style planning from the Maoist era, yet its roots run deeper, woven into the imperial grid of the Yuan dynasty and the enduring strength of the Great Wall. You’ve got ancient stone next to shiny skyscrapers, and it’s like the city’s challenging you to keep up. Unlike Bern’s tucked-away charm or Geneva’s quiet order, Beijing hums with traffic and purpose.

And yet, in contrast to a lot of what I’ve learnt from the media, it has surprised me. Young trees line the highways between cities, looking dense but fresh. The air is clean, the skies are blue on sunny days, and the streets? Spotless, like someone’s out there sweeping 24/7. From Tsinghua’s huge campus to Chaoyang’s slick offices, everything feels like it’s built to last, with a plan that stretches way into the future.

The People’s Rhythm

You hear about China’s work ethic — the “996” grind (9am to 9pm, six days a week) or even the mythical “007” (all hours, every day). I can’t confirm the latter, but the energy is real.

What I did see was a buzz of energy that’s hard to describe. Take Tsinghua University, we visited for 3 days as a part of the IEMBA program from HSG. We found out just a day before that it was Professor Bo Zhang’s 90th birthday. No problem, the next day, a gorgeous cake showed up, right on time. Try pulling that off in Switzerland, where you’d have to make arrangements with a bakery a month in advance and pay upfront, of course. It’s not just about speed; it shows how flexible people are, and not just in China, but all over the East.

That same vibe carried over to a networking dinner with Tsinghua Alumni. One guest was a woman who is in the caviar business. Someone casually asked to try her stuff, and before we’d even finished eating, a sleek trolley rolled in, loaded with the black Kaluga caviar for tasting. It was a showstopper, and all arranged on a whim. That kind of hustle, turning a passing comment into reality, sums up what I saw in Beijing. It’s not just work; it’s a knack for making things happen fast.

The Market’s Beat

Beijing’s energy doesn’t stop at its streets; it spills into its markets, where the pace is fast, the stakes are high, and the rules aren’t what you’d expect. China’s business scene is fiercely price-sensitive, a place where inflexible strategies unravel quickly.

You don’t call the shots here — you listen and pivot! Whether that’s slashing prices to compete in the lower segments, simplifying the product, and tailoring solutions to meet immediate demands.

That drive to adapt isn’t just about price. Relationships, or Quanxi, are what open doors. At Tencent, we toured their showroom, astonished by the technology they’re developing: digitalisation and cloud, AI, AR/VR, gaming, medical devices, biometric security, smart energy, automotive, self-driving solutions, and more. A manager shared how a million-dollar gaming deal emerged from a casual WeChat conversation. It’s not always about late-night baijiu toasts or karaoke, though they happen; it’s about showing you’re a real partner, not just another suit.

That same adaptability shines in innovation. At BOE Technology Group, they produce cutting-edge displays and IoT solutions. Their trick? They don’t just invent — they tailor. A manager shared how they rushed a new flexible screen prototype to meet a client’s last-minute specs for a foldable phone, beating rivals to the punch. That kind of agility, meshing tech with what the market wants right now, keeps them in the global top ranks.

The competition? Ferocious. Just listen to this ice cream story: There was this booth at an expo that was giving out free ice cream. It drew crowds for about two hours. That’s how long it took rivals to get their own ice-cream machines rolling, handing out cones and stealing the spotlight.

That’s Beijing’s market: ambitious, hungry, and relentless. You must be fluid, like water, to thrive.

The Rival: China vs. the USA

One thing that kept coming up in Beijing, whether in Tsinghua’s packed seminar rooms or over coffee at BOE, was the heavyweight match between China and the US. We dove into this idea called the Thucydides’ Trap, where a rising power (China) rattles the reigning champ (the USA). Forget warships; this fight’s playing out in boardrooms, server farms, and chip fabs. At Tsinghua, we debated its core: it’s AI, semiconductors, and who gets to steer the digital future.

It’s not just a question of who wins, but whether these two giants can coexist, or whether one has to set the rules.

China has a unique setup: tight state control mixed with capitalist hustle. It lets them move crazy fast, think massive subsidies for chip plants or AI labs sprouting overnight. Take BOE, which we visited, they’re not just making screens but racking up 90,000 patents, fifth globally for international filings. Or Tencent, whose AI is powering everything from WeChat to self-driving tech. Then there’s Hangzhou’s ‘Six Little Dragons’ — firms like Game Science, DeepSeek, Unitree Robotics, DEEP Robotics, BrainCo and Manycore Tech. These aren’t household names yet, but they’re driving China’s AI and chip push, building brains for smart cities and autonomous cars. Beijing is betting big on self-reliance, especially after US export bans on chips hit hard. US Tech Bro’s role in “underwriting” and “catastrophe assessment” multiply that by a billion, and you’ve got China’s AI game.

The US is playing a different card: open markets, deep pockets, and a knack for inventing first. Silicon Valley’s got Nvidia designing the world’s top AI chips and OpenAI setting the pace for generative models.

So what’s their edge?

Elite talent and software that build moats and could be tough to copy. But China’s catching up fast. A Tsinghua professor noted China produces more STEM PhDs than any nation, and companies like Cambricon are designing AI chips to rival Nvidia’s, even if they’re a step behind for now. The catch? US sanctions are squeezing China’s access to cutting-edge tools like ASML’s EUV machines, while China is pouring billions into domestic alternatives.

It’s not just tech — it’s the whole ecosystem. Supply chains are splitting: China’s building its own, from rare earths to batteries, while the US promotes a ‘China+1’ strategy to places like Taiwan and South Korea or switching on and off “friendshoring”. Don’t forget the “tariffs” and “escalating conflict”, think US chip bans or China’s data laws.

At Bossard, a Swiss firm we visited, they stay neutral, supplying components to both sides. But the tension’s real. Local managers understand that AI has to navigate US-style “open” platforms and China’s restricted networks, balancing global reach with local compliance.

So, is a clash inevitable? At Tsinghua, political lecture, we debated it. Some argued competition is healthy, it’s pushing both sides to innovate. Others worried about a digital iron curtain, where AI models and chip standards could split the world.

I personally saw the growth sectors like “green energy” and “mobility” — both are battlegrounds here, with China’s BYD outpacing Tesla in EVs and the US leading in autonomous driving software. Maybe it’s not about one side crushing the other, but who shapes the tech that runs our lives. Maybe this rivalry’s not just business — it’s the framework for the future?

The Shadow of Control: Concerns with the Chinese Government and the CCP

Beijing’s energy and ambition are undeniable, but there’s a flip side that kept nagging at me during my trip: the Chinese government and the CCP’s pervasive influence. It’s a system that can drive progress, like those electric cars and AI labs, but it’s got cracks that slow things down compared to a free market’s chaos.

It’s worth unpacking why, as I talked to lecturers, managers and companies we visited, I began to see how CCP control can be a double-edged sword.

First off, the government’s hand is everywhere. At BOE, yes, they’re cranking out patents but a manager hinted that state priorities often steer what they chase. Flexible screens for phones? Sure, but if Beijing wants tech for smart cities, that jumps the queue. What about “data security laws” raising costs? Tencent had to adapt its AI operations to comply with US and Chinese export controls by modifying data handling practices and sourcing restricted chips through indirect channels. It’s not just red tape — it’s a labyrinth that eats up time and money, unlike Silicon Valley, where companies like Wisecube AI pivot on a dime because no one is looking over their shoulder.

Then there’s the efficiency gap. The CCP’s top-down style can move mountains, think high-speed rails built in record time or chip subsidies flooding in. But it’s not always smart money. At Tsinghua, a professor told us about state-backed projects where billions were sunk into tech that didn’t pan out, like early 5G experiments that lagged behind Huawei’s private bets. Free markets aren’t perfect, look at the dot-com bust, but they let failures die fast and winners rise quicker. In China, government backing can prolong unviable projects, draining resources, as seen in the Evergrande real estate crisis or the education sector crackdown. And overcapacity is real — it creates price wars. State-driven overinvestment in sectors like solar or chips floods markets, slashing margins for everyone.

Control also stifles innovation in subtler ways. At a networking dinner, a guest pointed out why tech giants like Alibaba, DeepSeek, NetEase, and ByteDance set up in Hangzhou instead of Beijing. The capital’s heavy-handed oversight, think constant scrutiny and policy shifts, can choke creativity, pushing firms to seek breathing room elsewhere. It’s a bit like why Silicon Valley thrives far from Washington’s grip: less interference lets bold ideas flourish. In Beijing, the CCP’s emphasis on loyalty often means playing it safe, not taking the risks that spark breakthroughs.

The CCP’s lack of transparency, with sudden crackdowns on tech giants, keeps everyone on edge, unlike the predictable debates of Western markets. Still, China’s system has strengths, and it is expanding to other regions in the world. Tencent’s WeChat thrives because the government paved the way, unlike the EU, where antitrust scrutiny might prevent a comparable “everything app.” Yet the CCP’s control, censoring data, and selecting champions can hinder long-term agility and vision. Free markets reward speed and daring; China’s system, despite its might, sometimes stumbles under its own constraints. I spent a lot of time commuting and wondered: What would they be able to achieve without this grip holding them back?

The Bottom Line: How to Do Business in China

Beijing’s a wild ride — vibrant streets, fierce markets, global rivalries, and a system that’s both rocket fuel and quicksand.

So, how do you make it work here?

It’s not about dropping in with a Western playbook and hoping for the best. China’s market demands precision, and it hinges on a few core principles.

1. Flexibility’s your lifeline. You can’t bulldoze through with a one-size-fits-all approach. Customers expect products and services molded to their needs and fast. But don’t just copy what’s already out there; mix your unique strengths with what clicks locally, or you’ll blend into the noise.
2. Price is everything. Shoppers hunt for deals, and rivals are quick to undercut. You might need to trim margins to win a chunk of the market, but never skimp on quality. A solid brand that says “reliable” keeps you in the fight, because nobody trusts a bargain that breaks.
3. Connections open doors. Without guanxi, you’re on the outside looking in. It’s less about flashy gestures and more about proving you’re here to stay. It’s not all late-night drinks and karaoke, though those have their place too; real bonds come from showing you’re in it for the long haul. Trust can get you a seat at the negotiation table, yet only consistent delivery seals agreements.
4. Go local, seriously local. From sales to supply chains, everything has got to feel like it belongs here, not some import with a new label. Start small to keep costs down, maybe a lean team to test the waters, then double down once you’ve got a foothold.
5. Aim for what’s growing. Think electric vehicles, smart tech, green solutions — sectors where cash, ambition and future market potential collide. Avoid overcrowded spaces; identify a niche where your expertise shines, as dominant players already command the spotlight.
6. Embrace the uncertainty. Regulations shift, competitors strike, and nothing’s predictable. That’s not a flaw — it’s the reality. Stay nimble, keep your eyes open, and ride the wave. China’s not here to make it easy, but get it right, and you’re not just surviving — you’re shaping what comes next.
7. Above all, “Life isn’t about waiting for the storm to pass, it is about learning to dance in the rain.” China is not Zurich, and it has got no interest in being a duplicate. Data rules, policy curveballs, cutthroat competition — that’s a lot. Yet that’s the magic. Tencent dances around regulations and still pushes AI worldwide. BOE juggles government goals and client deadlines, landing among the world’s leaders. You can’t tame this market, but you can ride it; stay quick, stay tough, and don’t expect a rulebook.

I hope you find my notes useful. Good luck out there!