Why major American corporations have struggled in China: eBay

eBay has been involved with China for a while, starting in 2004, so one can see an example of what the longer-term timeline looks like for a very successful American company trying to gain a foothold into China without guanxi. eBay absolutely lost its battle against the most similar Chinese company, Alibaba. In an immediate response to eBay entering China, Alibaba created Taobao to be a direct competitor. As of January 5th 2017, Alibaba (NYSE: BABA) had a market cap of $235.93 billion US dollars whereas eBay (NASDAQ: EBAY) had a market cap of $33.55 billion US dollars.
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