> China is not turning out to be a land of milk and honey for western corporations. The best business decision for a Western business with regard to China may be to give up on it, because the PRC wants your local competitor to succeed, not you.

Agreed. Which is why my advice is limited to companies who will lose to competitors if they fail to compete in Chinese markets. Any company seeking to strike out in China without a local competitor will fail because of the reasons mentioned in the article. That said, any western company trying to compete with Chinese companies will also fail.