Drawing experience from Hong Kong, Taiwan and Thailand, Winn (1998)
cautions that with the rapid pace of globalization, the market environment has constantly
changed, and more often than not, in a drastic manner. The immediate challenge for these ethnic Chinese businesses, especially those are in the category of “builders” 10 is to
expand their business operations into new markets, notably outside Asia. However, the
regulatory environment in the new markets is totally foreign. The Chinese business
networks which have been a key factor in achieving business success in Asia may
become less useful in the new environment. Winn observes that “the strength and
insulation of the Bamboo Network in Asia as well as the lack of market competition has
given Chinese companies as Asia-focus myopia and has actually inhibited overseas
Chinese business to globalize.” It is therefore not uncommon that ”the heads of the
largest overseas Chinese companies may be one of the richest men in the world, but few
have created a global product or an international brand name, let alone commanding
strong market share in an area outside Asia.” One way to overcome such constraint is
through acquisitions of existing non-Chinese firms with products or services of
international brands, but the costs of such acquisitions can be enormou