How is that the government's fault?
>China just purchased 300 planes from Airbus instead of Boeing.
Airbus is European
>McDonalds sold off 80% of its China operations to a Chinese stated-owned company years ago because it had trouble adapting its menu.
Again why is McDs inability to serve the Chinese palate the fault of the government? Consumer tastes in food are far more determined by culture than government.
The rest of your statement is a non sequitur and strawman.
The parent poster claimed McDonalds was a successful example, however it only successful because it is now led by Chinese-state-owned agency so the real-estate (which is 99% of the value) is not foreign owned. Same with KFC.
What is non-sequitur? That governments exist and have different rules for their businesses and citizens?
2. > Boeing or Airbus get a significant lead over each other in their controlling market
Isn't that the smart thing to do? Government ALWAYS chooses multiple vendors, DARPA wants to use AWS as its sole cloud computing provider and it gets SUED.
What you seem to want to point out is, China has a very unique business environment and domestic market, where Western companies, if not going through intensive localization and adaptation, can't directly deploy its otherwise global operations in China easily. Yes, China needs to open more of its market, and under the current trade war, it needs to do that fast. However, that still won't mean that American companies should assumed be the winner, unless they have a competing edge, the locals just can't offer.
I really don't see this is a much problem here. China/Japan/Korea, those Asian countries have dynamic domestic economy, and those companies are competitive in their homeland.
Amazon couldn't compete because it was not allowed to compete.
China allows foreign companies to compete and grow as long as they follow their rules and are in non-critical markets. Amazon was in a critical market and had domestic competition so it was pressured until it left.
Aviation is a critical market so Boeing and Airbus are being carefully controlled to stay soft in favor of the upcoming (state-run) Comac C919 jetliners getting US certified. China is already selling these jets in Asia and they will be the used by all 3 major (state-run) Chinese airlines once ready, eventually pushing out Boeing and Airbus completely.
They don't really care about some luxury goods brands but they are investing heavily in critical sectors like aviation. They have a long road ahead but Comac (state-owned manufacturer) is already selling commercial aircraft to other countries.
Companies are allowed to operate and grow, but they are tightly controlled. Apple has strong competition and has already trimmed prices and revenue targets. China just purchased 300 planes from Airbus instead of Boeing. McDonalds sold off 80% of its China operations to a Chinese stated-owned company years ago because it had trouble adapting its menu. KFC in China is owned by Yum China and headquartered in Shanghai.
The world is not some free-market paradise. Territorial rules are everywhere. You'll encounter them just to do business in local counties within a state like New York. China's government has incredible power and control and has far more impact than you might think.