I run a business in China. To run a business targeting Chinese consumers, you need to be based inside China.

I often see people ask American-based startups: "Why don't you offer Chinese support and try to grab the Chinese market?" It's really not that simple. Even for an existing startup, successfully entering the Chinese market basically requires you to run a totally new business. If you don't treat the Chinese branch like its own indigenous company, you won't get anywhere. I think Google is an excellent example of a company that failed, or refused, to understand this.

I wouldn't write off google china quite yet? They still have a huge office here churning out tons of code, making interesting things, kicking ass with android stuff..

Yep (although I'm back in Canada for a while now). maxklein is also doing his startup in China.

IMO, Youku's most obvious competitive advantage is that they undergo almost no pressure from copyright holders. There are tons of full movies available on Youku and I highly doubt they have licensing partnership like Hulu does.

I'm one of them. The weakness of yuku is most of the videos are uploaded by the website itself, not the user generated content. The reasons behind it is quite complicated...

China is a complicated place to be in. Think of it this way, like USA, its people and government value patriotism. But in China the government prefer(enforce) patriotism without the (any)freedom of speech.

Yes, I am. Was inside till a few days ago, but now outside, but with an established office in china.